PETRONET LNG

Flash News Investment - - RECOMMENDATIONS -

Petronet LNG is a gov­ern­ment com­pany en­gaged in im­port­ing LNG hav­ing two ter­mi­nals in Da­hej and Kochi. The in­stalled ca­pac­ity of both these fa­cil­i­ties is 15 MMTPA and 5 MMTPA, re­spec­tively. In Q1FY19, the in­creased ca­pac­ity util­i­sa­tion at Da­hej fa­cil­ity led to 15 per cent YoY growth in vol­umes and 42 per cent YoY growth in rev­enue. The com­pany in­tends to ex­pand this ca­pac­ity to 17.5 MMTPA by H1FY20, which would fur­ther drive the topline. The vol­umes at Kochi ter­mi­nal are set to in­crease as de­mand of pipe­line con­nec­tiv­ity from Tamil Nadu and Kar­nataka is ris­ing. The op­er­at­ing profit and net profit were up by 25.6 per cent and 34 per cent YoY dur­ing the quar­ter. It is also plan­ning to set up 20 LNG sta­tions in In­dia. Con­sid­er­ing the ro­bust growth and ca­pac­ity ex­pan­sion, we rec­om­mend it as a BUY.

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