Neutral Petronet LNG; target of Rs 330: Motilal Oswal

Motilal Oswal's research report on Petronet LNG

Petronet LNG’s 3QFY25 revenue came in below our estimates, as total volumes stood below our estimates, primarily due to lower third-party cargos. While EBITDA was also marginally below estimates, higher-than-expected other income led to PAT coming in-line with our estimates. We believe that higher Spot LNG prices, averaging USD13.9/mmbtu in 3Q (up 7% QoQ), led to a decline in total volumes. Spot LNG prices continue to remain elevated in 4QFY25’td, averaging USD14.2/mmbtu.

Outlook

We value PLNG at 11x Dec’26E EPS to arrive at a TP of INR330. We reiterate our Neutral rating on the stock.