Hold Petronet LNG; target of Rs 290: Prabhudas Lilladher

Prabhudas Lilladher's research report on Petronet LNG

PLNG hosted an analyst meet and a plant visit at its Dahej LNG terminal. Company has outlined a long-term vision of targeting Rs1000bn in revenue, Rs100bn in PAT with a planned capex of R s400bn over the next 5 years (1-5- 10-40). As per the mgmt, the incremental regasification capacity of 5mmtpa at the existing Dahej terminal is being executed at 1/10th the cost of a comparable greenfield project worth Rs65bn. 3rd jetty will have the provision to handle Ethane, Propane and LNG.

Outlook

Integration of existing LNG infrastructure with the upcoming petchem plant will help achieve cost savings. Although, management interaction was encouraging; execution remains a key monitorable. Maintain “Hold” with a target price of Rs290 based on 9x FY27/FY28E EPS.