IGL: a midcap company with high growth rate

K. ARAVIND

Indraprastha Gas Limited (IGL) is a Delhi-based gas supplier. IGL’s main business is natural gas supply, which was founded in 1998 as a joint venture between GAIL and BPCL. The Delhi government has 5% stake in the company. The company was listed on the Stock Exchange in December 2003.

 

The company supplies gas for domestic, commercial and industrial use. When it started operations in 1999, the company had only nine CNG (compressed natural gas) stations and 10,000 PNG (piped natural gas) customers. Today, the company has 463 CNG stations in Delhi, Noida and Ghaziabad. The company delivers PNG to 6.36 lakh households. The company also supplies PNG to 4,100 industrial units.

 

Indraprastha Gas has performed well in the current financial year. The company is growing 100 per cent every year in providing commercial gas connections. The company owns one of the largest CNG filling systems in the world for buses. There are five gas distribution networks in Delhi and the National Capital Region.

 

The performance of IGL stock over the years was different from that of the stock index. The stock has gained 14.5 per cent since the start of 2020. At the same time, the S&P BSE Midcap Index fell 7 per cent in 2019.

 

IGL is one of the stocks that has not significantly affected by the stock market correction. This is a stock that investors can buy with a long-term goal. Assessing the growth potential of IGL in the gas supply sector, this stock will bring investors remarkable returns in the long run.