Motilal Oswal's research report on Petronet LNG
Dahej is expanding from 15mmtpa to 17.5mmtpa capacity in few weeks. On the expanded capacity, utilization contracts are only for 15.75mmtpa. Spot LNG prices have declined to ~7% of Brent for future deliveries. Favorable low prices should enable PLNG to garner handsome marketing margins. Competition too remains weak. Reiterate Buy with target price of INR315.
Outlook
We value the stock using DCF (WACC: 12%, terminal growth: 3%). With a target price of INR315, we reiterate Buy on PLNG.
For all recommendations report, click here
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