Do you want to invest in the share of IGL Ltd and also try to know their targets for the future years 2022, 2023, 2024, 2025, and 2030? so here we will give you some extra information about this share so that you may know before investing in this share. so this article must be useful for you, please read this article mindful.
IGL Ltd was established in 1998 and provides its primary services in Delhi and NCR region surrounding Delhi. IGL Ltd headquarters in Delhi. IGL Ltd provides their services in gas distribution which works as fuels for vehicles and for food preparation at home. The present managing director of IGL Ltd is Sh. A K Jana.
IGL Ltd started as a joint venture between GAIL, Bharat Petroleum, and Govt. of Delhi. This Joint venture allows them to take over and operate the Delhi Gas distribution project from GAIL to make a network of gas distribution pipelines in Delhi and the surrounding region around that city. As of now, IGL Ltd operates around 500 CNG filling stations for natural gas vehicles. IGL gets this natural gas Via the HVJ Gas Pipeline which is a subsidiary of GAIL.
IGL Ltd provides its services through the distribution of Natural gas which includes PNG, and CNG. PNG is methane with a combination of other hydrocarbons. PNG burns almost completely which makes them the cleanest fuel. PNG is transported through a network of pipelines across Delhi. CNG stands for Compressed Natural Gas. It is a gaseous fuel that acts as a fuel substitute for other auto fuels which includes petrol, Diesel.
If we talk about the current ratio it indicates if there are any chances of unexpected loss in business and the economy. If Company has a high current ratio it becomes desirable because then Businesses have a very low Percent of getting unexpected losses in business. The current ratio of IGL Ltd is around 1.32 which is the average value so we can say we can expect some types of bumps in business.
The debt to equity ratio of IGL Ltd is zero and indicates that Company has a very low amount of debt in their total capital which they have for now. IGL Ltd has debt at a very manageable level which they can easily pay by their current short-term asset without any disturbance in other resources of business which is essential to have to run the business.
In this section, we try to give you our view through a number of analytical terms which include Ownership, Valuation, Efficiency, and Financials.
- Ownership: The ownership strength of IGL Ltd has been stable because of the joint Ventures IGL LTD.
- Valuation: The operating margin of IGL Ltd is around 30.23 which is pretty much an overvalue at this point in time.
- Efficiency: The efficiency of IGL Ltd is excellent in itself.
- Financials: the financials of this company is very stable. IGL Ltd has some debt left which they pay easily through their current asset without any disturbance in other resources.
Strength Of IGL Ltd
In this section, we try to provide you with some strength regarding one of the leader companies in the sector of natural gas distribution that is IGL Ltd.
- IGL Ltd has had a good ROE% which is around 18.39% per year for the last few years which is very much higher than other shares of the Company in this sector.
- IGL Ltd has a good EPS of around 21.31 which is so much.
- The company has virtually debt free
- The IGL Ltd has an efficient cash conversion cycle of fewer than 17 days which helps the Company to have resources with them every time they need them.
Limitations Of IGL Ltd
In this section, we try to provide you with some limitations regarding the shares of IGL Ltd which you as a reader essential to know before investing in the shares of this Company.
- IGL Ltd has a very bad revenue growth which is about 2.89% from last year which they need to improve as soon as possible.
- IGL Ltd has shown a decline in net profit with a profit margin over the last few years.
- IGL Ltd will need to improve its customer base as of now they are only active in the Delhi NCR region.
In this object, we have predicted for the upcoming share price target of IGL Ltd on the basis of a technical analysis chart that is given below.
| Year | Target Of IGL Ltd |
|---|---|
| 2022(Target-1) | Rs.557 |
| (Target-2) | Rs.668 |
| 2023(Target-1) | Rs.733 |
| (Target-2) | Rs.805 |
| 2024(Target-1) | Rs.921 |
| (Target-2) | Rs.1,044 |
| 2025(Target-1) | Rs.1,137 |
| (Target-2) | Rs.1,286 |
| 2030(Target-1) | Rs.3,292 |
| (Target-2) | Rs.3,539 |
IGL Ltd follows the 2/1 Gan Fan line and behaves as a Good Support line for the shares price of this Company. Consistent volumes were found from the last 6 years and they are ready to break out of the resistance line. In this section, we try to predict two share price targets till the end of the year 2022. The first share price target for the shares of IGL ltd is around Rs.557 and the second share price target for the same share is around Rs.668 at the end of the year 2022.
The line around 1/1 Gan Fan behaves like a good resistance line for the share price of Indraprastha Gas Ltd after analyzing this technical chart of IGL Ltd through terms and principles. We can say its short term is negative for a while but its long term is positive and in an uptrend. In this section, we will try to predict two predicted targets for the shares of IGL Ltd for the year 2023. The first share price target which we can predict for this Company in the year 2023 is around Rs.733. the second share price target for the same share at the end of the year 2023 is around Rs.805.
The PE ratio indicates for every rupee of earnings how much the investor is ready to pay for a single share. The PE ratio of IGL Ltd is about 20.02 which is very much high and we can say the share of this IGL Ltd overvalue. In this section, we again try to predict two possible share price targets that the shares of IGL Ltd will be able to achieve at the end of the year 2024. The first share price target for the share of IGL Ltd for the first half of the year 2024 is around Rs.921. the second share price target for the same Company share is around Rs.1,044.
The promoters of this Company have around 45% of the total shares in their hand. Bharat Petroleum has around 23% of the share on their side. GAIL India Ltd. have around again 23% of their in their part till now. The remaining Percent of shares percentage is in the hand of public stakeholders, so it is better than others. In this section, we try to predict two predicted targets for the shares of IGL Ltd till the end of the year 2025. The first share price target which we predict for the same share is around Rs.1,137. The second share price which the shares of this company can able to achieve at the end of the year 2025 is about Rs.1,286.
IGL Ltd distributes Natural gas to households and vehicles because of the increasing amount of pollution per year other cities in India will also need to initiate these steps. We can assume after 5 years IGL Ltd has around 10 times more customer base than the present time IGL Ltd In this section, we try to predict two share price targets for the shares of IGL Ltd till the end of this decade which is the year 2030. The first share price target for the year 2030 is around Rs.3,292 and the second share price target for the same share is around Rs.3,539 till the end of this decade.
Conclusion
In this article, We have done a detailed analysis of a leading Company in Natural Gas Distribution that is IGL Ltd. We tried to include every aspect in our article which is really essential to know before investing in any specific company shares.
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I am a skillful trainer of the share market for the last 7 years. I have better knowledge of technical analysis, fundamental analysis, chart understanding, writing about share market, investing as well as trading which I wanted to spread all over the people.