Indraprastha Gas Ltd., India’s largest city gas distributor by revenue, is heading for its worst day in more than three years after Jefferies and Morgan Stanley downgraded the stock following a new electric vehicle policy in the national capital.
Delhi accounts for 88 per cent of IGL’s overall volumes but the EV policy could put about a third of it at risk, Jefferies analysts Bhaskar Chakraborty and Niraj Todi wrote in a note. The brokerage downgraded the stock to hold from buy earlier, while slashing its price target by 18 per cent. Morgan Stanley also cut its recommendation to underweight.
