Moneycontrol PRO
HomeNewsBusinessStocksBuy Petronet LNG ; target of Rs 320: YES Securities

Buy Petronet LNG ; target of Rs 320: YES Securities

YES Securities is bullish on Petronet LNG has recommended buy rating on the stock with a target price of Rs 320 in its research report dated November 10, 2022.

November 15, 2022 / 15:52 IST
     
     
    26 Aug, 2025 12:21
    Volume
    Todays L/H
    More

    YES Securities' research report on Petronet LNG

    PLNG’s 2QFY23 reported operating profit at Rs 11.7bn (‐10% YoY; +10% QoQ) stood ahead of our and street estimates, primarily on higher gas trading gains. PLNG reported a gas trading gain of Rs 2730mn (1Q: Rs 1030mn), stemming from operational efficiency, as it shifted its energy consumption to grid power, from expensive LNG, which in‐turn was traded. However, depreciation in INR also resulted in 980mn of forex losses, related to lease liabilities. The terminal utilization & throughput deteriorated during the quarter on account of weaker LNG import in the country as LNG price environment firmed up and supply from Gazprom contract got shunted. We believe that there are headwinds in the near term viz a) high LNG prices weighing on demand, b) commissioning of RIL’s MJ field by end of Dec’22, which could substitute LNG import, but in the longer run we believe, India’s dependence on LNG is only going to increase. In addition, PLNG is investing in brownfield and greenfield projects to cement its position in the LNG import market. Maintain BUY.

    Outlook

    We value PLNG at Mar 24 TP of Rs 320/sh on DCF basis, implying a target PE multiple of 15.4x FY25e, vs 10.3x the stock is trading at. The current trading multiple is one standard deviation below PLNG’s mean trading multiple, which is closer to our target multiple.

    For all recommendations report, click here

    Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Petronet LNG - 14 -11-2022 - yes

    Broker Research
    first published: Nov 15, 2022 03:52 pm

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347