Feb 16, 2017 05:26 PM IST | Source: Moneycontrol.com
Hold Petronet LNG; target of Rs 410: ICICI Direct
ICICI Direct recommended hold rating on Petronet LNG with a target price of Rs 410 in its research report dated February 14, 2017.
ICICI Direct's research report on Petronet LNG
Petronet LNG reported its Q3FY17 results, which were below our estimates on the topline front. Revenues increased 22.4% YoY to Rs 6299.3 crore (our estimate: Rs 7065 crore) due to lower-than expected short term/spot volumes. Total sales volume were at 191.4 tbtu, above our estimates of 179.2 tbtu due to higher regasification volumes at 75.3 tbtu (our estimates: 53.2 tbtu).
In the long term, we expect volumes to show stable growth and will contribute to higher profitability. We have valued the stock based on DCF methodology (WACC 12%, terminal growth 3%) to arrive at a price target of Rs 410 with a HOLD rating.
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