Buy Petronet LNG; target of Rs 300: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Petronet LNG has recommended buy rating on the stock with a target price of Rs 300 in its research report dated May 22, 2018.

Broker Research

May 28, 2018 / 15:57 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Petronet LNG

Lower realisation, volume impact earnings: Petronet LNG (PLNG) reported Q4FY18 EBITDA and PAT of Rs8.2bn (+33% YoY, -3% QoQ; PLe Rs9bn) and Rs5.2bn (+11% YoY, -1% QoQ; PL e Rs5.5bn), respectively. PLNG's total volumes were at 212tbtu (-5%QoQ) post restart of Dabhol LNG terminal in September. At the call, PLNG management clarified that demand momentum remains extremely strong from user industries like CGD, fertiliser and even power sector. Also, management sees no threat from new terminals like Mundra, Ennore etc given that PLNG remains the lowest cost terminal.

Outlook

We like PLNG's business model given high earnings visibility from India's growing reliance on imported LNG. Led by rising capacity and higher tariffs, we expect 20% earnings CAGR over FY18-20E with ROE of over 20%. Reiterate BUY with a DCF based PT of Rs300 (unchanged).

For all recommendations report, click here