Buy Petronet LNG; target of Rs 270: Sharekhan

Sharekhan's research report on Petronet LNG

Volume growth likely to be supported by strong demand appetite for low-cost LNG (reflected in 5.6% y-o-y growth in India’s LNG imports during April-May 2019). PLNG may surprise with dividend payout similar to FY2019 level of 70% and, thus, could result in dividend yield of 4-5%.

Outlook

We maintain our Buy rating on Petronet LNG (PLNG) with unchanged PT of Rs. 270. Strong volume growth outlook led by expansion of Dahej capacity to 17.5 mmt and likely higher utilisation for Kochi terminal.