Sell Petronet LNG; target of Rs 272 Prabhudas Lilladher

Prabhudas Lilladher is bearish on Petronet LNG has recommended sell rating on the stock with a target price of Rs 272 in its research report dated October 24, 2024.

Broker Research

October 28, 2024 / 11:45 IST

sell

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Petronet LNG

Petronet LNG reported an EBITDA of Rs12bn (down 23.2% QoQ, PLe: Rs12.3bn, BBGe: Rs13bn)in Q2FY25, while PAT came in at Rs8.5bn (down 25.8% QoQ, PLe: Rs8.3bn, BBGe: Rs8.9bn). Total volume declined 8.8% QoQ to 239 TBtu due to lower regas volume. Dahej terminal’s capacity utilization stood at 98%. The management expects the terminal to continue operating at 95-100% utilization going ahead. However, we remain negative on the stock given the expensive valuations. PLNG is likely to face competition with commissioning of upcoming LNG terminals.

Outlook

Increasing domestic gas supply and underutilization of its Kochi terminal remain another challenge. Additionally, capex on its petrochemical project is likely to be margin dilutive (Link). We maintain ‘Sell’ rating with a TP of Rs272 based on 10x avg FY26-27 EPS.

For all recommendations report, click here