Reduce Petronet LNG, target price Rs 215: HDFC Securities

HDFC Securities has reduce call on Petronet LNG with a target price of Rs 215. The current market price of Petronet LNG is Rs 226.55.

Petronet LNG, incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 33652.50 Crore) operating in Gas & Petroleum sector.

Petronet LNG key Products/Revenue Segments include Liquified Natural Gas, Other Services and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 15955.51 Crore, down -.74 % from last quarter Total Income of Rs 16073.66 Crore and up 25.94 % from last year same quarter Total Income of Rs 12669.14 Crore. Company has reported net profit after tax of Rs 1175.94 Crore in latest quarter.

The company’s top management includes Mr.Pankaj Jain, Mr.Sanjeev Kumar, Mr.Arun Kumar Singh, Mr.S M Vaidya, Mr.Manoj Jain, Mr.Sundeep Bhutoria, Mr.Sanjeev Mitla, Ms.Bhaswati Mukherjee, Mr.Sidhartha Pradhan, Mr.Pramod Narang, Mr.V K Mishra, Mr.Akshay Kumar Singh, Dr.(Ms.)Alka Mittal. Company has T R Chadha & Co. as its auditors. As on 31-12-2022, the company has a total of 150 Crore shares outstanding.

Investment Rationale
The brokerage has a reduce rating on the counter on the back of an adverse impact of high spot LNG price and rising domestic gas production on spot LNG demand in the medium term.

Promoter/FII Holdings
Promoters held 100 per cent stake in the company as of 31-Dec-2022, while FIIs owned 69.7 per cent, DIIs 7.84 per cent.