Buy Petronet LNG; target of Rs 276: Kotak Securities

Kotak Securities' research report on Petronet LNG

We believe Petronet's earnings will continue to rise over the next 2-3 years, driven by higher volumes from Dahej LNG regasification terminal and a higher operating rate of the currently stranded Kochi terminal. Construction of the pipeline to evacuate gas from Kochi is progressing well. PLNG is eyeing to invest in the overseas LNG market which will help him in geographical diversification and further expansion.

Outlook

We maintain BUY on the stock with a revised price target of Rs.276/- (earlier Rs.285) including equity value of 26% stake in Dahej Port. Given that most of the capacity at Dahej is tied-up, there is strong visibility on the free cash flow. For all recommendations report, click here

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