Expect upside of 10 pc for Petronet LNG: Seshadri Bharathan

ET Now spoke to Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd, on his views on stocks.

ET Now: What's the call on Petronet LNG?

Seshadri Bharathan: It is a great business to be in. If you look at the fundamentals, then company is expected to report earnings of around Rs. 7.5-8 for FY11 and if you look at historically, this stock trades around 15 multiples, so stock price should be around Rs 115-120, so yes there is even an upside of 10% left here.

Having said that, it is a unique business where the company is in the business of receiving and regasification of LNG and going forward when we are seeing increasing demand for gas across the country, it is a great business to be in and next year they will start their new terminal at Kochi, Kerala. My sense is that if you are invested in this stock for next couple of years, it will give handsome returns.