Prabhudas Lilladher's research report on Petronet LNG
PLNG reported an EBITDA of Rs12.5bn (up 3.9% QoQ, PLe: Rs11.4bn, BBGe: Rs12.7bn) in Q3FY25, while PAT came in at Rs8.7bn (up 2.3% QoQ, PLe: Rs7.5bn, BBGe: Rs8.7bn). Total volume declined 4.6% QoQ to 228TBtu mainly due to lower regas volume. Dahej terminal’s capacity utilization stood at 93% (vs 98% in Q2). The management expects the terminal to operate at 95-100% utilization going ahead. However, we believe PLNG is likely to face competition from upcoming LNG terminals. Increasing domestic gas supply and underutilization of its Kochi terminal remain other key challenges. Additionally, capex on its petrochemical project is likely to be margin dilutive (Link).
Outlook
We re-rate the stock from ‘Sell’ to ‘Reduce’ post correction in stock price with a TP of Rs276 based on 10x avg FY27 EPS.
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