Prabhudas Lilladher's research report on Petronet LNG
We lower our FY22/23E estimates by 16%/4%to factor volume dip from high spot LNG prices and lockdown restrictions. PLNG is a play on India’s rising LNG imports supported by soft spot LNG prices. We like PLNG’s business model given high earnings visibility and see limited competition to its wellentrenched reach in the LNG business.
Outlook
However, recent change in their business strategy to set up 1,000 LNG stations along with investment in Compressed Bio Gas (CBG) plant is a dampener, as returns are likely to be back ended. Reiterate BUY with a DCF based PT of Rs351 (Rs406).
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