Shares of Indraprastha Gas and Mahanagar Gas experienced significant drops, with Indraprastha Gas falling by 11% on Friday.
The cause behind this plunge is linked to the newly approved EV policy by the Delhi government, targeting cab and delivery services. This move has unsettled both companies in the stock market.
Mahanagar Gas saw a decrease of over 7% on the same day, while Indraprastha Gas faced an 11% decline.
Brokerage Firm Weighs In
In addition to the Delhi government’s policy, Indraprastha Gas received an additional setback from Jefferies, a brokerage house.
Jefferies lowered Indraprastha Gas’s target price to Rs 465 and recommended holding the stock.
The brokerage explained that the Delhi Government has sent the EV policy for final approval by LG, showing a strong commitment to promoting electric vehicles (EVs).
Government’s Aggressive EV Goals
The government’s policy sets a six-month target of 5% EV adoption for companies like Ola and Uber.
Over the next three years, companies will be required to give preference to 50% EV vehicles when making new purchases, with a 100% adoption target within five years.
Stock Performance
Over the past year, Indraprastha Gas’s shares have increased by 18%, while Mahanagar Gas shares have risen by 33% during the same period.
