Accumulate Petronet LNG; target of Rs 397: Geojit Financial Services

Geojit Financial Services research report on Petronet LNG

Petronet LNG Ltd (Petronet) is a public sector company that imports liquefied natural gas (LNG) and establishes LNG terminals in India. It operates one regasification terminal each in Dahej (17.5 MMTPA installed capacity) and Kochi (5 MMTPA). In Q1FY25, the consolidated revenue grew by 15.1% YoY to Rs. 13,415cr, supported by robust volume growth. EBITDA rose 32.2% YoY and the margin widened 150bps YoY to 11.6%, due to strong operational performance.

Outlook

Capacity expansion at Dahej and Kochi terminals, increased capital expenditure, improving utilisation, and robust volume growth are positive signs for its long-term performance. Therefore, we upgrade our rating to ACCUMULATE on the stock, with a revised target price of Rs. 397 based on 14x FY26E adjusted EPS.

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