Kotak Securities is bullish on Petronet LNG Ltd has recommended buy rating on the stock with a target price of Rs 267 in its research report dated July 30, 2018.
Kotak Securities's research report on Petronet LNG Ltd
Strong operating performance is backed by higher RLNG off-take from both Dahej and Kochi terminals, contractual escalation in tariffs and better operational efficiency. The company has bid for seven city gas licenses and expects city gas foray to boost Kochi LNG plant capacity usage. We expect robust near-term growth as Kochi ramps up and Dahej expands nameplate capacity by 8%.
We expect PLNG to report an EPS of Rs.16.1/18.6 for FY19E/FY20E, respectively. At CMP, we believe that the stock is attractively valued at 12.4x FY20E earnings. We recommend BUY (earlier ACCUMULATE) rating on the stock with a revised price target of Rs.267/- including equity value of 26% stake in Dahej Port.
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