Buy Petronet LNG, target price Rs 335: Motilal Oswal

Motilal Oswal has given buy rating to Petronet LNG with a target price of Rs 335. The share price moved down by 1.08 per cent from its previous close of Rs 222.90. The stock’s last traded price is Rs 220.50.

Petronet LNG Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 33135.00 Crore) operating in Gas & Petroleum sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 4883.57 Crore, down 43.00 % from last quarter Sales of Rs 8567.15 Crore and down 43.30 % from last year same quarter Sales of Rs 8613.44 Crore Company has reported net profit after tax of Rs 520.23 Crore in latest quarter.

Investment Rationale
The stock trades at 10.2x FY22E EPS of INR21.3 and 5.7x FY22E EV/EBITDA, with expected EBITDA CAGR of ~13% over FY20-22E. It values Petronet LNG on DCF basis to arrive at a fair value of Rs 335.

Promoter/FII Holdings
Promoters held 50 per cent stake in the company as of June 30, 2020, while FIIs held 29.2 per cent, DIIs 7.9 per cent and public and others 13 per cent.