Sharekhan is bullish on Petronet LNG has recommended buy rating on the stock with a target price of Rs 330 in its research report dated October 30, 2019.
Sharekhan's research report on Petronet LNG
Petronet LNG’s (PLNG) Q2 numbers were strong as adjusted PAT grew by 42.5% y-o-y to Rs. 818 crore, above our estimate of Rs. 726 crore. Strong performance was driven by robust volume growth of 13.7% y-o-y to 240 tBtu at Dahej terminal. Completion of Kochi-Mangalore pipeline now expected by December-2019 (versus October-2019 earlier); deal with Tellurian is subject to back-to-back contracts for volume offtake and PLNG would limit its exposure to $500mn-$1bn in the absence of its affiliates. Strong volume-led earnings visibility and superior RoE of ~28-30% make PLNG an attractive investment proposition in the domestic gas utilities space.
We maintain a Buy rating on PLNG with revised price target of Rs. 330.
For all recommendations report, click here
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