Shares of Indraprastha Gas Ltd (IGL) jumped about 5.4 per cent on Wednesday, climbing to around Rs. 193 per share, after global brokerage Nomura upgraded its rating on the city gas distributor from Neutral to Buy. The upgrade was based on attractive valuations following a recent price correction and expectations of margin improvement as gas costs ease.
Nomura has assigned a target price of Rs. 230, implying significant upside potential from prevailing levels. The brokerage believes that recent weakness in IGL’s share price and softer imported gas prices will support profitability going forward.
The positive broker action boosted investor sentiment in the broader city gas space, with other related stocks also drawing attention amid the upgrade. Market participants see the Nomura recommendation as a catalyst for renewed buying interest in IGL’s stock after recent underperformance relative to broader markets.
