Buy Petronet LNG; target of Rs 260: Geojit

Geojit is bullish on Petronet LNG has recommended buy rating on the stock with a target price of Rs 260 in its research report dated January 30, 2023.

Broker Research

February 01, 2023 / 14:06 IST

26 Aug, 2025 12:21

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Geojit's research report on Petronet LNG

Petronet LNG Ltd., (“Petronet”) was formed by the Indian government to import liquefied natural gas (LNG) and set up LNG terminals in India. The company operates two regasification terminals, situated in Dahej (17.5 MMTPA installed capacity) and Kochi (5 MMTPA). Petronet’s consolidated revenue grew 25.2% YoY to Rs. 15,776cr in Q3FY23, primarily due to higher realisation and recognition of Rs. 849cr ‘use or pay charges.’ Due to solid cost optimization strategies, EBITDA margin expanded sequentially to 10.6% in Q3FY23 from 7.3% in Q2FY23.

Outlook

Although the worldwide macro uncertainties could affect the company’s performance matrix in the short term, robust deal book, better cost optimization, capacity expansion, enhanced utilisation and improved supply chain are expected to offset the situation. Hence, we remain positive on the stock and reiterate our BUY rating with a revised target price of Rs. 260 based on 10x FY25E adjusted EPS.

For all recommendations report, click here