BRICS upgrades Petronet LNG to ‘ADD’

MUMBAI: BRICS has upgraded Petronet LNG to ‘ADD’ as the valuations have become attractive in the stock after the recent fall in price.

“After recent fall in stock price, Petronet LNG’s valuation has become attractive at 14.1xFY12E and 14.3xFY13E earnings. We upgrade the stock to Add. We believe concerns about PLNG’s volumes from Gorgon gas are overplayed as volumes are protacted by agreement with its off takers.

"Also, RIL-BP natural gas JV might expand R-LNG market in India by bringing in more gas. Our estimates for PLNG remain unchanged,” the report said.