IGL is leading Natural gas Distribution Company operates primarily in Delhi. A joint venture of Gail, BPCL. Established in 1998 and were having just the sales and profits of 400 Cr and 80 Cr 15 years back while today able to make sales & profits of around 6500 Cr and 840 Cr respectively. 15X growth. Hence, Investment has refunded in dividends due to high consistent profits since inception as well valuations is also 20X. A Debt free and with Best margins in industry.
Current year 9M sales has fallen by -32% shows effect of COVID-19 with profits fall of around -17%. New buying again can be done near 410 (upgraded from 340) during any fall and can hold it for long term wealth creation and near term 3 year target could be 750.
Delhi till 2030 is to be in top populated city of the world, should require more gas. LIC Just accumulated 1.4 Cr shares last year around 300. 17% with MF and Insurance companies along with around 24% FII.
Fairvalue could be seen from: