ICICI Direct is bullish on Petronet LNG has recommended buy rating on the stock with a target price of Rs 285 in its research report dated May 22, 2018.
ICICI Direct's research report on Petronet LNG
Petronet LNG reported its Q4FY18 result, which were largely in line with our estimates. The topline increased 35.7% YoY to | 8636.2 crore, above our estimates of | 7855.5 crore, mainly on account of higher realisations. Volumes increased 18.2% YoY and came in largely in line with our estimates at 212.7 tbtu.
Outlook
With India continuing to be significantly short of natural gas supply, Petronet LNG will benefit as the primary play on increasing usage of LNG. In the long term, we expect volumes to show stable growth and contribute to higher profitability. We value Petronet LNG at 16x FY20E EPS of | 17.9 to arrive at a price target of | 285 with a BUY rating.
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