Hold Petronet LNG; target of Rs 250: ICICI Direct
ICICI Direct recommended hold rating on Petronet LNG with a target price of Rs 250 in its research report dated June 10, 2021.
June 15, 2021 / 11:20 AM IST
ICICI Direct's research report on Petronet LNG
Petronet LNG reported Q4FY21 results that were in line with estimates on the operating front. However, profitability was lower-than-expected on account of other income. Total volumes were flattish YoY, down 7.2% QoQ to 218 tbtu. Revenues were down 11.6% YoY to Rs 7575.3 crore (estimated: Rs 7920.2 crore). EBITDA was at Rs 1091.1 crore, up 56.4% YoY (our estimate: Rs 1107.7 crore). Blended margins were at Rs 59.3/mmbtu in line with estimates. Other income at Rs 49.2 crore was lower than expectations of Rs 97.8 crore. Subsequently, PAT increased 73.6% YoY to Rs 623.4 crore as profitability was impacted by inventory loss and certain one-offs in the base quarter (I-direct estimate: Rs 685.1 crore).
We maintain our HOLD recommendation on the stock. We value Petronet LNG at 11.5x FY23E EPS of Rs 21.7 to arrive at a target price of Rs 250 (earlier Rs 275).
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