Please refer to important disclosures at the end of this report
Petronet LNG Limited (PLL) is engaged in sale of re-gasified liquefied natural gas
(RLNG). The company has been improving its revenues I n the last 3 years. The
company’s CAGR in net revenue was 12.3% during this period. It’s revenues and
overall business is expected to go well even in tough times on account of:
1) Recent crash in oil prices will, 2) PLNG’s ~16mmtpa of long-term
regasification contracts, 3) Capacity expansion at Dahej terminal by around 2
MMTPA on track. Under this plan, the company envisages installing additional
tank and a jetty. 4) Kochi ramp-up to 1.5-2.2mmtpa is likely in H2FY21 post
Kochi-Mangalore pipeline commissioning.
PLL has been maintaining average dividend payout of average 20%. Cash flows
has improved from `901cr in FY15 to `2,141cr in FY18. PLL’s back-to-back
LNG purchase-sales agreement provides comfort on the business model. It
remains a structural story of India’s increasing gas demand. With India
continuing to be significantly short of natural gas supply, PLL will benefit as the
primary play on increasing usage of LNG. The company has a ROE of 21.8%
and it is currently trading at a valuation P/Bv of 3x of FY19 TTM earnings. Hence
CMP `235
52 Week High / Low
Avg. Daily Volume
Oil Marketing& Distri.
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Jaikishan Parmar
022 3935 7600 Ext: 6810
Petronet LNG Ltd
Others | Oil Marketing & Distribution
May 21, 2020
Petronet LNG Ltd |Oil Marketing & Distribution
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Petronet LNG
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)