February 16, 2017 / 17:26 IST
Petronet LNG reported its Q3FY17 results, which were below our estimates on the topline front. Revenues increased 22.4% YoY to Rs 6299.3 crore (our estimate: Rs 7065 crore) due to lower-than expected short term/spot volumes. Total sales volume were at 191.4 tbtu, above our estimates of 179.2 tbtu due to higher regasification volumes at 75.3 tbtu (our estimates: 53.2 tbtu).
Outlook
In the long term, we expect volumes to show stable growth and will contribute to higher profitability. We have valued the stock based on DCF methodology (WACC 12%, terminal growth 3%) to arrive at a price target of Rs 410 with a HOLD rating.
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