Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Petronet LNG; target of Rs 260: Emkay Global Financial

Emkay Global Financial is bullish on Petronet LNG has recommended buy rating on the stock with a target price of Rs 260 in its research report dated November 10, 2022.

November 14, 2022 / 09:54 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Emkay Global Financial's research report on Petronet LNG

PLNG’s Q2FY23 results beat our estimates by 12-13%, driven by higher spot LNG marketing earnings, as its volume rose from 1tbtu to 2tbtu QoQ. This was despite lower overall volumes, as Dahej operated at ~80% capacity vs our expectation of ~86%. EBITDA/PAT of Rs11.7bn/7.4bn grew 10%/6% QoQ. Gross profit was at an 8% beat, with implied marketing margin at USD26-27/mmbtu. Other expenses were also down, by 17% QoQ to Rs2.1bn, standing 4% lower than our estimate, while employee cost was down 23% YoY. Long-term Dahej volumes were up 2% QoQ to 103tbtu, while tolling fell 18% QoQ to 77tbtu. Kochi saw 16% utilization (in-line), with term volume of only 10tbtu (vs 12tbtu QoQ). Overall EBITDA/mmbtu rose 19% QoQ to Rs61.1 (up 8% YoY). PLNG has declared a special interim dividend of Rs7/share (vs. Rs8 YoY). It extracted more gas from internal consumption, selling the excess in the spot market at high premiums, thus driving earnings, which is creditable.


Outlook

We lower our volume assumptions, but raise EBITDA/mmbtu, which results in only a slight change in overall earnings estimates and the Sep-23 TP (Rs260/sh) remaining unchanged; retain BUY. The Board has approved the East-coast terminal at Gopalpur, Odisha (4mmtpa capacity, Rs23bn capex), though we have not built it in our estimates.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Petronet LNG - 14 -11-2022 - emkay

Broker Research
first published: Nov 14, 2022 09:54 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347