Petronet LNG gets Kotak’s buy tag

Petronet LNG’s ( PLNG) earnings is expected to rise over the next 2- 3 years, driven by higher volumes from Dahej LNG regasification terminal and a higher operating rate of the currently stranded Kochi terminal. Construction of the pipeline to evacuate gas from Kochi is progressing well. PLNG is eyeing to invest in the overseas LNG market, which will help it in geographical diversification and further expansion. The company’s management has highlighted that Dahej LNG terminal expansion from 15 MMTPA to 17.5MMTPA is expected to completed by June 2019 and it will buy 3- 4 LNG cargoes in FY19. This will help in meeting the rising domestic gas demand. Recently, it has expanded Dahej capacity by 50 per cent to 15 MMTPA and the same is contracted for more than 90 per cent of its capacity giving decent revenue visibility.

Broking firm: Kotak Securities Rating: Buy Closing price: 230.50 `

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