Petronet LNG (PLNG) was formed as a joint venture by the government of India to import liquefied natural gas (LNG) and set up LNG terminals in India. While Dahej terminal has a capacity of 15 MMTPA, the Kochi terminal has a capacity of 5 MMTPA.
Valuations Given PLNG’s dominant position in this space, we expect revenue/PAT to grow at a CAGR of ~16%/7%% over FY17-19E. We are upbeat on the stock as it is a play on India’s rising LNG imports. Hence, we recommend ‘BUY’ rating on the stock with a TP of Rs247 based on 15.7x FY19E EPS.
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