Accumulate Petronet LNG ; target of Rs 254: Dolat Capital

Dolat Capitals recommended accumulate rating on Petronet LNG with a target price of Rs 254 in its research report dated July 30, 2018.

Broker Research

September 18, 2018 / 16:54 IST

26 Aug, 2025 12:21

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Dolat Capital's research report on Petronet LNG

Petronet LNG (PLNG) numbers were in line with our estimates on revenue front. Operating and net profitability were significantly above our estimates. Beat on the operating performance is mainly due to high heat wave during Q1FY19 enabling PLNG to consume lower quantity of gas for internal consumption. With operational efficiency and control on other expenses, operating profit beats our estimates significantly (by more than 14%). Kochi terminal utilization remains low and is only expected to improve post completion of Kochi – Mangalore pipeline.

Outlook

With no risk of gas prices, PLNG will continue to generate significant cash year after year driven by capacity expansion and increase in re-gasification margins. We reiterate our Accumulate recommendation with a target price of ` 254.

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