Motilal Oswal - MOSL: Morning India (26/September/17)-1. Petronet LNG (Firm utilization continues)-2. Capital Goods (PGCIL ordering declines 76% YoY in YTDFY18)-3. Metals

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Motilal Oswal

Team Research

MOSL: Morning India (26/September/17)-1. Petronet LNG (Firm utilization continues)-2. Capital Goods (PGCIL ordering declines 76% YoY in YTDFY18)-3. Metals

â€‹MOrning India (26/September/17): 1. Petronet LNG (Firm utilization continues); 2. Capital Goods (PGCIL ordering declines 76% YoY in YTDFY18); 3. Metals

Todayâ€™s top research idea

Petronet LNG: Firm utilization continues; Dahej continues to lead

Our channel checks suggest more than full utilization at Dahej and marginally increased throughput at the Kochi LNG terminal.
We continue believing that increased domestic gas production and upcoming competition would not be a significant risk to utilization.
PLNG is likely to continue gradual capacity addition at Dahej terminal to benefit from the evolving LNG opportunity in India. We expect its total capacity to reach 22.5 mmtpa by FY20. Firm off take contracts at Dahej terminal and ramp-up of Kochi terminal would enable PLNG to post volume CAGR of 10% over FY17-20. We do not assume any escalation in Kochi re-gas charge 2018 onward. Assured volume growth and tariff hikes would help PLNG to post 16%/17% EBITDA/PAT CAGR over FY17-20.
With a target price of INR 275, we reiterate our Buy rating.

Piping hot news

RBI revises investment, trading rules for banks

The Reserve Bank of India (RBI) on Monday barred banks from investing in category III alternative investment funds (AIFs), specified norms for their participation in commodity derivatives clearing, and tweaked rules on investing in financial services firms.

26/09/2017 28 EN

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MOSL: Morning India (26/September/17)-1. Petronet LNG (Firm utilization continues)-2. Capital Goods (PGCIL ordering declines 76% YoY in YTDFY18)-3. Metals

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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