Accumulate Petronet LNG; target of Rs 260: Dolat Capital

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Dolat Capital's research report on Petronet LNG

PLL Q1FY20 revenues were line with estimates, due to higher off-take from the Dahej terminal. The volume was 217 TBTU for Q1FY20. Volumes at Dahej were higher due to addition of nameplate capacity at Dahej of 2.5 MMTPA and shut down of Dabhol terminal (which will be operational post monsoon). The Dahej terminal’s capacity utilization continues to be 112%. The Kochi terminal’s utilization remains low and is only expected to improve after the completion of the Kochi-Mangalore pipeline in June 2019. Given gradual capacity addition and increase in re-gasification margins, PLL will ride the gas demand evolution of India. PLL is poised to benefit from the gas demand.

Outlook

We believe the stock should be re-rated, after the completion of pipelines for the Kochi terminal. We reiterate our Accumulate recommendation, with a target price of ` 260.

For all recommendations report, click here

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