Buy Petronet LNG; target of Rs 351: Prabhudas Lilladher

Prabhudas Lilladher's research report on Petronet LNG

We leave our FY22/23E estimates unchanged. PLNG reported better than expected results with EBIDTA/PAT of Rs12.9bn (+23%Q/Q; PLe Rs11.8bn) and Rs8.2bn (+29%Q/Q, PLe Rs7.3bn), due to higher regas volumes and margins. Management’s plans on gradually ramping up LNG stations, removes an overhang on capital allocation. 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.

Outlook

Reiterate ‘BUY’ with a DCF based PT of Rs351 (unchanged).