Neutral on Petronet LNG with a target at Rs 280: Motilal Oswal

Motilal Oswal maintains a neutral view on Petronet LNB post March quarter results with a 12-month target price of Rs 280. Petronet LNG's 10mmt to 15mmt Dahej expansion is on track and will be further ramped up to 17.5mmt.

While the major capex is now behind the company, any room for increasing dividend payout will depend on the company's growth plans in the adjoining countries.

"The key factor to watch out for, in our view, will be the gas economics in comparison to liquid fuels. Any resolution on the Kochi-Mangalore-Bangalore pipeline will be a positive," said the brokerage firm.

"The stock trades at 18.8x FY17E EPS of INR14.9 and 14.1x FY18E EPS of INR19.9. Maintain Neutral with a price target of INR280," it said.