In Outlook Business’ third edition of The Outperformers, these are the companies that have managed to beat the market over a five-year period, creating significant value for their shareholders.
The company, a joint venture of GAIL (India), Bharat Petroleum & Delhi government showed tremendous growth, as its stocks grew at 39% CAGR over the past five years. This growth was led by IGL’s deep reach in existing areas of operations. In FY18, the company also started supply of CNG and PNG domestic in Rewari district of Haryana. It has also started building infrastructure in the earmarked area of Gurugram and geographical area of Karnal. Recently, the company received a letter of intent from PNGRB for grant of authorization for development of CGD network in the geographical area of Meerut, Muzaffarnagar & Shamli Districts in Uttar Pradesh.
IGL’S net profit grew from Rs.6,063 million in FY17 to Rs.8,739 million in FY19 and is expected to reach Rs.11,994 million in FY21. In FY19, net sales was Rs.63.61 billion and profit, Rs.7.86 billion. In this period, sales volume increased from 1,891 million standard cubic metre (scm) in FY18 to 2,155 million scm. IGL, which retails CNG to automobiles in the national capital and adjoining cities, saw sales volume increase by 13% and PNG sales volume increase by 15% last fiscal. Product wise, CNG recorded sales turnover of Rs.47.61 billion, registering a growth of 24%, and PNG recorded sales turnover of Rs.15.76 billion with 35% increase over the previous year. IGL trades at 17.7 P/Ex FY21E.
Cholamandalam Investment & Finance Company
After strengthening its roots in vehicle financing (81% of the overall loan book), Cholamandalam Investment has now diversified its portfolio by doling out loans to MSMEs and homebuyers, including loan against property. Such diversifie