Indraprastha Gas rallies after CNG, PNG price cut in Delhi

Indraprastha Gas jumped 9.09% to Rs 270.05 at 13:42 IST on BSE on reports the price of compressed natural gas was slashed by Rs 15 per kg and the price of piped natural gas was cut by Rs 5 per cubic metre in Delhi.

Meanwhile, the BSE Sensex was down 180.98 points, or 0.88%, to 20,332.87.

On BSE, so far 2.74 lakh shares were traded in the counter, compared with an average volume of 35,314 shares in the past one quarter.

The stock hit a high of Rs 269.50 and a low of Rs 244.20 so far during the day. The stock hit a 52-week high of Rs 328.50 on 9 May 2013. The stock hit a 52-week low of Rs 236 on 28 August 2013.

The stock had underperformed the market over the past one month till 31 January 2014, sliding 7.46% compared with the Sensex's 3.10% fall. The scrip had underperformed the market in past one quarter, falling 11.24% as against Sensex's 3.07% fall.

The mid-cap company has an equity capital of Rs 140 crore. Face value per share is Rs 10.

Oil minister M Veerappa Moily reportedly announced on Monday, 3 February 2014, that the price of compressed natural gas (CNG) was slashed by Rs 15 per kg in Delhi. The price of piped natural gas (PNG) was also cut by Rs 5 per cubic metre, he added.

While the CNG price was cut by almost 30% in Delhi, the minister said this was a positive signal for other states and cities, which could also soon see price reduction of 25-30%. The central government told the Supreme Court it would give CNG at uniform prices to all states that had a distribution network.

Media reports suggested that the price of CNG was earlier hiked by 4.50 per kg by in Delhi in December last year. The price of cooking gas piped to kitchens was increased by Rs. 5.15 per kg.

Also, the government will increase the availability of gas for domestic users. GAIL will uniformly supply domestic gas to the distributors, reports added.

Indraprastha Gas' net profit declined 6.5% to Rs 92.75 crore on 18.1% growth in net sales to Rs 1009.02 crore in Q2 September 2013 over Q2 September 2012. The company will announce Q3 results on 10 February 2014.

Indraprastha Gas is the sole supplier of CNG and PNG in Delhi, Noida, Greater Noida and Ghaziabad.

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