Prabhudas Lilladher's research report on Petronet LNG
We change our FY23/24E estimates by +2%/-6% as we tweak our regas volumes and margins in a high gas cost environment. PLNG reported lower than expected results with EBIDTA and PAT of Rs11.7bn (-33%Q/Q; PLe Rs12.6bn) and Rs7.5bn (-34%Q/Q, PLe Rs8.0bn) due to higher regas margins. This included take or pay charges of Rs832mn for lower offtake by customers. PLNG is a play on India’s rising LNG imports, despite rising domestic gas production. We like the business model given 1) high earnings visibility and 2) limited competition to its well-entrenched reach in LNG business.
Reiterate ‘BUY’ with a DCF based PT of Rs315 (Rs356 earlier).
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