Upcoming Webinar :Register now for 'ULIP as an investment during economic recovery' powered by Bajaj Allianz

Buy Petronet LNG: Target Of Rs 300: Sharekhan

Sharekhan is bullish on Petronet LNG recommended buy rating on the stock with a target price of Rs 300 in its research report dated November 12, 2020.

Nov 15, 2020 / 11:30 AM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research repor on Petronet LNG

Q2FY2021 results were strong with operating profit/adjusted PAT of Rs. 1,363 crore/Rs. 862 crore, up 17.5%/5.3% y-o-y and beat of 20%/23% versus our estimate of Rs. 1,132 crore/Rs. 700 crore. Earnings beat estimates as Dahej re-gas volume exceeded hopes at 243tbtu (up 1.3% y-o-y), lower other expenses and higher other income. Strong volume visibility with Dahej terminal operating above pre-COVID levels and potential ramp-up in Kochi terminal’s utilisation to 20-25% by Q4FY2021. PLNG provides a high degree of earnings visibility (expect a 12% CAGR over FY21E-FY23E) with a RoE of 28% in these uncertain times. A rising share of LNG in India’s gas consumption bodes well for long-term volume growth. Valuation is attractive at 9.8x its FY2023E EPS (19% discount to its historical PE multiple) despite strong earnings visibility, high RoE and FCF/dividend yield of 9%/6%.


Hence, we maintain our Buy rating on Petronet LNG with an unchanged PT of Rs. 300.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Nov 15, 2020 11:30 am

stay updated

Get Daily News on your Browser