Petronet LNG Q4 Review - Capital Allocation Concerns Back In Focus: Prabhudas Lilladher

Petronet LNG’s Kochi terminal (Source: Company website).

Petronet LNG Q4 Review - Capital Allocation Concerns Back In Focus: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

We lower our FY22/23E estimates of Petronet LNG Ltd. by 16%/4%to factor volume dip from high spot liquefied natural gas prices and lockdown restrictions.

The company is a play on India’s rising LNG imports supported by soft spot LNG prices.

We like the company’s business model given high earnings visibility and see limited competition to its well-entrenched reach in the LNG business.

However, the recent change in their business strategy to set up 1,000 LNG stations along with investment in a compressed biogas plant is a dampener, as returns are likely to be back-ended.

Click on the attachment to read the full report:

Prabhudas Lilladher Petronet LNG Q4 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.