Sunday, April 26, 2020

Petronet LNG Ltd – Trading at a Discount





Petronet LNG Ltd  closes   at  218.50  with  a  Loss     of    -2.10 %   on    25-April-2020   with formation of  a  SMALL RED Candle    on Daily  Price Chart.
Investment Rationale : Petronet LNG Ltd  is well-placed to benefit from rising gas demand supported by its recent capacity expansion to 17.5 mmt at the Dahej terminal and plans tofurther expand capacity to 19.5 mmt in the next 2-3 years by setting up two storage tanks and a jetty.
It is expected that company will  get generate  Revenue / Sales of Rs. 35721.95 Cr in FY2020 & Rs. 37436.28Cr in FY2021 & will post a Net Profit of Rs.2891.09 Cr  in FY2020 and Rs. 2989.60 CR in FY 2021.
Valuation : Petronet LNG Ltd  is now Trading at X 1.0 of its Value ( Earnings of last 4 Quarter is considered here )If we factor the above Net Profit , the Company   is Trading at X0.70 of its Value to its FY2020 earnings basis ( at a discount of ~30%), and X0.68 to FY21 its earnings ( at a discount of ~32%)
Disclaimer : We are / may going to take exposure shortly.
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