Monday, March 2, 2009

Stock Idea: Indraprastha Gas Limited (IGL)

Indraprastha Gas Limited (IGL) is India’s biggest gas distributor, owned by the state-run GAIL and Bharat Petroleum. It supplies compressed and piped natural gas for Delhi and its outskirts. Its results for the third quarter ended 31st Dec 2008 has not been good.

At the behest of the Govt, in April, the company had to put its expansion plans on hold. The company had planned to increase the number of CNG dispensing stations to 200 by 2010 from 166 now, and was expecting to supply the gas to 300,000 vehicles and the same number of homes. This has had a negative impact on the future plans of the company.

IGL registered a turnover of Rs 247.56 crore, posting a sales value growth of 18%.The company reported a 15% decline in net profit for the third quarter of the current fiscal at Rs.38.30 crore. The biggest impact was on account of the demand of Rs 17.50 crore received from supplier of natural gas for excess draw of gas for July-December 2008. Though the company has disputed this demand, it has thought it prudent to provide for this in the Q3 quarter.
Over the next two years, IGL plans to spend Rs.500 crore to expand its retail network with the addition of 50 new outlets. It is also ramping up the gas compressing capacity of its existing outlets by 40-50%, to 2.8 million kg of gas per day.
Given the importance given today to environmental friendly companies and priority to petrol/diesel substitutes which are clean, IGL is poised to do well. Being an already established player, it also has the advantage of being amongst the first entrants.
Sptulsian.com

Intraday Trading Calls for 02nd March

Stock Market India may open Negative with gap down but a small recovery expected from lower levels. A Negative closing expected today.

Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):

SCRIP NAME

TRIGGER

PRICE

TARGET 1

TARGET 2

CAIRN INDIA

Buy Above

167.80

172.15

177.00

Sell Below

165.40

162.15

158.00

VIDEOCON INDUSTRIES

Buy Above

87.50

92.45

98.00

Sell Below

85.10

82.15

78.00

REL CAPITAL

Buy Above

355.70

363.15

372.00

Sell Below

349.70

345.15

340.00

BANK OF BARODA

Buy Above

222.60

227.80

234.00

Sell Below

218.35

213.45

208.00

RCOM

Buy Above

157.60

161.55

166.00

Sell Below

154.20

151.15

147.00

IVRCL INFRA

Buy Above

110.10

114.50

120.00

Sell Below

107.40

103.25

100.00

TATA STEEL

Buy Above

173.75

178.45

184.00

Sell Below

170.25

166.45

160.00

GOOD LUCK

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



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