IGL cracks 10% after Jefferies downgrades the stock to hold; stock tumbles over 14% in 2 days

In early morning deal, the stock cracked up to 10 per cent to hit the day’s low of Rs 436.25. In 2 days, the stock has plunged over 14 per cent

Further, the policy requires cab aggregators like Uber and Ola to have 5% EVs in six months time, 50 per cent in 3 years and the remaining in 5 years time. (Image: Reuters)

Shares of the gas distribution company Indraprastha Gas extended their losing streak for the second straight session on Friday (October 20) after global brokerage double downgraded the stock to hold from the earlier buy rating. The brokerage has also slashed the target price significantly from the previous Rs 565 to Rs 465, implying potential upside of nearly 2 per cent from the previous close.

In early morning deal, the stock cracked up to 10 per cent to hit the day’s low of Rs 413. In 2 days, the stock has plunged over 14 per cent

On October 19, the Delhi government gave a go-ahead to the electric vehicle policy for cab aggregators as well as delivery service providers. As part of the scheme, the government has mandated 100 per cent transition of cab aggregators, e-commerce companies and delivery service providers to electric vehicles by 2030.

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Further, the policy requires cab aggregators like Uber and Ola to have 5% EVs in six months' time, 50 per cent in 3 years and the remaining in 5 years' time.

Brokerage firm Jefferies is of the view that the EV adoption by the Delhi government could potentially impact 30% of IGL’s overall volumes starting FY25. Also, it sees new GAs or general advisories, accounting for 88 per cent of the company’s volumes, to unlikely offset the slowdown in the NCR region. The brokerage downgraded FY25/26 EPS by 7-9 per cent, while reducing the valuation multiple, factoring growing EV risk.

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