Please refer to important disclosures at the end of this report
Petronet LNG Limited (PLNG) is engaged in sale of re-gasified liquefied natural
gas (RLNG). The Company is engaged in the import and re-gasification o
liquefied natural gas (LNG). Lower RLNG prices have led to higher demand.
PLNG is set to benefit, as no other LNG player has spare capacity. PLNG has
commissioned the incremental capacity of 5 mtpa at Dahej in October 2016.
Off-take agreements for the new capacity are in place. The Dahej terminal is still
the most inexpensive in India and will have pricing power over the new plants.
PLNG is exploring for growth opportunity in Bangladesh and Sri Lanka. Strong
cash flows will lead to higher dividend payouts in coming quarters. It seems that
volumes could remain strong in coming quarters led by incremental volumes
from expanded capacity. The volumes might marginally pick up after Dahej
expansion to 15 mmtpa by end of FY16 with 98% long term contracts provides
solid stability in earnings profile thus the long term demand prospects remain
positive. Policy change on stranded power plants will help to increase the
volumes going forward. The company has shown a good RoE of 20% in the last
5 years. Hence Buy.
CMP `376
Stock Info
Beta 0.9
Bloomberg Code
Shareholding Pattern (%)
Promoters 50.0
MF / Banks / Indian Fls 16.0
FII / NRIs / OCBs 21.7
Indian Public / Others 12.3
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
Petronet LNG 15.2 78.4 207.4
Reuters Code PLNG.BO
BSE Sensex 26,150
Nifty 8,074
Face Value (
Oil & Gas
Market Cap (
cr) 28,234
52 Week High / Low 411/208
Avg. Daily Volume 1,02,524
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Petronet LNG
Others | Oil & Gas
November 21, 2016
Petronet LNG | Oil & Gas
November 21, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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Disclosure of Interest Statement Petronet LNG
1. Financial interest of research analyst or Angel or his Associate or his relative No
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Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)