Buy Petronet LNG; target of Rs 335: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal 's research report on Petronet LNG

PLNG continues to outperform volume estimates. 2QFY21 volumes were better than estimated (at 254tbtu, +5% est.) and led to an EBITDA beat due to inventory gain. This was owing to sharp increase in spot prices during the quarter. We expect LNG imports to increase further as demand from CGDs and other segments normalize in 3Q-4QFY21. This should be aided further by continued strong demand from the power sector and new fertilizer plants coming up in FY22. Also, the NGT’s actions against severely/critically polluted industrial clusters would lead to higher adoption of gas from industries.

Outlook

The stock trades at 11.4x FY22E EPS of INR21.3 and 6.5x FY22E EV/EBITDA, with expected EBITDA CAGR of ~11% over FY20-23E. We value PLNG on DCF basis to arrive at a fair value of INR335. Reiterate Buy.

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.

Read More