Prabhudas Lilladher suggests investors accumulate Petronet LNG shares with a target price of Rs 322. The company reported a strong profit of INR 12.4bn, which grew 53.3% year-on-year. Better operational efficiency and higher utilization at the Dahej plant helped these results. Experts now expect steady growth for the firm ahead.
Prabhudas Lilladher's research report on Petronet LNG Reported EBITDA stood at INR16.6bn (PLe: INR14.5bn; BBGe: INR15.1bn), up 8.6% QoQ and 48.9% YoY, driven by INR6.6bn in operational and commercial efficiency gains (erstwhile trading/inventory gains). Consequently, reported PAT stood at INR12.4bn (PLe: INR10.7bn; BBGe: INR11.0bn), up 9.1% QoQ and 53.3% YoY, supported by higher EBITDA and lower D&A and interest expenses. Total volumes increased 11.6% QoQ and 1.3% YoY to 231Tbtu, with the mix remaining skewed towards 3rd-party volumes amid Qatar's force majeure. As per PLNG, overall utilization improved to 64% from 58% QoQ, while Dahej utilization increased to 73% from 66% QoQ.
We have raised our FY27E Dahej utilization estimate to 73% (previously: 68%), while retaining Kochi utilization at 24%. Our Dahej utilization estimate is based on the expanded capacity of 22.5mmtpa. We expect utilization to improve further at Dahej/Kochi to 74%/30% in FY28E (previously: 73%/30%) and 75%/30% in FY29E. Outlook Maintain 'Accumulate' with a revised TP of INR325 (earlier: INR313), based on 10x (unchanged) Sep'28E EPS. 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.
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