Buy Petronet LNG, target price Rs 255: Emkay Global

Emkay Global has buy call on Petronet LNG with a target price of Rs 255. The current market price of Petronet LNG Ltd. is Rs 210.25. Time period given by analyst is one year when Petronet LNG Ltd. price can reach defined target.

Petronet LNG Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 31507.50 Crore) operating in Gas & Petroleum sector.

Petronet LNG Ltd. key Products/Revenue Segments include Liquified Natural Gas, Other Services and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 11241.74 Crore, down -11.27 % from last quarter Total Income of Rs 12669.14 Crore and up 47.44 % from last year same quarter Total Income of Rs 7624.47 Crore. Company reported net profit after tax of Rs 745.37 Crore in latest quarter.

Investment Rationale
The brokerage cuts FY23E/FY24E EBITDA by 2% each as it builds in a higher Kochi tariff, offset by volume reduction from high LNG prices. It lowers Mar’23E DCF-based TP by 5% to Rs255, assuming higher WACC. It retains Buy with an EW stance.

Promoter/FII Holdings
Promoters held 50.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 33.6 per cent, DIIs 3.38 per cent.