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Petronet LNG rises post results; brokerages mixed on stock

BusinessToday.In     June 10, 2021

Share of Petronet LNG rose 2 per cent to hit an intraday high of Rs 233.40 on BSE a day after the company reported numbers for the quarter ended March 2021.

For the quarter ended March 2021, the company reported an 11.6 per cent year-on-year (YoY) decline in revenue from operations at Rs 7,575 crore and the standalone profit was up 73.6 per cent YoY at Rs 623.4 crore.

The stock ended 1.62 per cent higher at Rs 232.25 against the previous close of Rs 228.55. Market cap of the firm rose to Rs 34,837.50 crore.

ICICI Securities believes that the numbers for Q4FY21 were largely in line with estimates on the operating front. However, profitability was lower due to a dip in other income.

Citi has downgraded the stock to 'neutral' and reduced its target price to Rs 260 from Rs 325 per share.

The brokerage firm has lowered FY22-23 earnings estimates by 7-9 percent. It also noted that the FY21 dividend payout is lower at 58 per cent as compared to 70 per cent over FY19-20.

However, CLSA is bullish on the stock and has maintained a 'Buy' call with a target price of Rs 270 per share. The brokerage house believes that the stock is among the most attractive value stocks in India.

Credit Suisse believes that improvement in utilisation at Dahej and Kochi are catalysts. The brokerage has an 'outperform' call on the stock with a target price of Rs 270 per share.

Promoters held 50 per cent stake in the company as of March 31, 2021, while FIIs held 30.5 per cent, DIIs 6.3 per cent and public and other 13.2 per cent.

The board of the company announced a final dividend of Rs 3.5 per share, in addition to an interim dividend of Rs 8 - totaling Rs 11.5 per share.

Petronet LNG Limited is a Public Limited Company in the Indian energy sector. It has set up the country's first LNG receiving and regasification terminal at Dahej, Gujarat with a present nominal capacity of 17.5 MMTPA, and another terminal at Kochi, Kerala having a nominal capacity of 5 MMTPA.

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