Originally posted by bobbyusd
The problem with IGL is the licensing part, which is up for auction every few years. Besides to what degree can the business be scaled up, given the area of operation.
On the positiv note, gas is something which is used everyday be it in autos, homes or industries. |
It is nice that IGL grows within its means and not in a leveraged way with debts, equity dilution etc.
The entire economy will slowly turn into gas based to a large extent...US is trying it, so RIL acquiring shale gas assets there...
If IGL is given the licence to operate in many cities, it will be quite difficult to set up the infrastructure in place (pipelines etc.), procure gas lifeline without stretching itself.
But in spite of that, IGL is growing @ 30%, and is debt free, is expected to do better and better. And home consumers of cooking gas don't change suppliers unless desperate, so IGL has assured locked in cash flow as well as entry barrier for new entrants.
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Dhiraj Bhai? Buy tomorrow na.. 
