Dolat Capital recommended Accumulate rating on Petronet LNG with a target price of Rs 249 in its research report dated May 16, 2019.
Dolat Capital's research report on Petronet LNG
PLL Q4FY19 revenue and profitability were below our estimates, due to lower off-take from the Dahej terminal. The volume was 205 TBTU for Q4FY19, while profits were impacted by an inventory loss of ` 119 crore. Spot price of natural gas has fallen from $8.5 per mBtu at beginning of quarter to $4.3 per mBtu. This loss was a notional loss as per the IndAS valuation of inventory for the quarter. The Dahej terminal’s capacity utilization continues to be 104%. The Kochi terminal’s utilization remains low at 10% and is only expected to improve after the completion of the Kochi-Mangalore pipeline in June 2019. Given gradual capacity addition and increase in re-gasification margins, PLL will ride the gas demand evolution of India. PLL is poised to benefit from the gas demand.
We believe the stock should be re-rated, after the completion of pipelines for the Kochi terminal. We reiterate our Accumulate recommendation, with a target price of ` 249.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .