Indraprastha Gas Limited stock has declined nearly 20% in 2026 so far amid crude oil price volatility, elevated input gas costs. The depreciation in the Indian currency has further dragged IGL outlook as it has raised the cost of imported liquified natural gas (LNG) in rupee terms. Despite these near-term and structural concerns, Motilal Oswal believes the recent correction has made the stock’s valuation attractive.
The stock also continues to remain under pressure amid growing investors’ concern around Delhi’s EV policy, which poses long-term risk to Indraprastha Gas’s CNG volumes.
IGL stock has corrected nearly 10% in the last four months due to factors like crude oil price volatility, elevated input gas costs and currency depreciation. The N1 and N2 electrification under Delhi’s EV policy will be a structural long-term negative for IGL, highlighted Motilal Oswal in its report while maintaining that the near-term earnings impact could be limited for the company.
“IGL currently trades below mean -1SD one-year forward P/E valuation. Excluding MNGL and CUGL, the stock is trading at 9x FY28E P/E, despite generating ~14 15% RoE and delivering 6-8% volume growth. We believe the current valuation appears to underappreciate the earnings resilience and growth potential of the business,” stated the brokerage in its report released on Friday.
Motilal Oswal gave a ‘Buy’ rating for Indraprastha Gas stock with a target price of ₹195 per share. “We value IGL at 13x Dec’27E SA P/E and add INR44/sh as the value of JVs to arrive at our TP of INR195/sh. At a 2.6% FY27E dividend yield and 14% EPS CAGR over FY26 28, we believe the valuation is attractive. Reiterate BUY.”