Motilal Oswal - Petronet Lng Limited (PETRONET) MOSL: PETRONET LNG (Buy)-Dahej continues stellar utilization

Report

Motilal Oswal

Swarnendu Bhushan

EUR 120.00 For Business Accounts Only

MOSL: PETRONET LNG (Buy)-Dahej continues stellar utilization

Petronet LNG: Dahej continues stellar utilization

(plng IN, Mkt Cap USD4.8b, CMP INR228, TP INR320, 40% Upside, Buy)

EBITDA was flat YoY (-4% QoQ) at INR8.5b, higher than our estimate of INR8.4b, led by continued high utilization at Dahej and better implied marketing margins on spot volumes. PAT grew 7% YoY (flat QoQ) to INR5.7b (our estimate: INR5.5b).
Strong utilization at Dahej: Throughput at Dahej stood at 197Tbtu (-8% YoY, -7% QoQ), implying utilization of 104% for the quarter. Long-term volumes stood at 109Tbtu, third-party at 84Tbtu and short-term/spot at 4Tbtu.
Kochi achieved a throughput of 5Tbtu (-37% YoY, -16% QoQ), implying utilization of 8% for the quarter.

Valuation and view

For 9MFY19, EPS stands at INR11.4. We estimate FY19 EPS at INR15.0. The spot LNG prices in Jan-Mar’19 also appear favorable and may result in higher utilization than what we have assumed in the fourth quarter.
In FY20, we expect total throughout to grow by 10.8%. This, combined with an increase in tariff at Dahej, should result in an increase of 21% YoY in EBITDA and 24% YoY in EPS for FY20.
We see an immediate trigger for volume offtake from (a) further expansion at Dahej to 17.5mmtpa in the next 2-3 months, (b) higher offtake from BPCL’s refinery as it stabilizes and (c) completion of the Kochi-Mangalore pipeline.
Net cash and investments would stand at INR51b (end-FY19). The lack of immediate capital expenditure outlay amid high free cash flow generation has been a concern for investors. However, so far, the company has not announced any unrelated expansion. We expect higher dividend payout to continue.

01/02/2019 10 EN

Underlying

Petronet Lng Limited

Petronet LNG develops, designs, constructs, owns and operates Liquefied Natural Gas (LNG) import and regasification terminals in India. Co. operates through the natural gas business segment. Co.'s terminals include Dahej LNG terminal, Kochi LNG terminal and Solid cargo port. Co. owns and operates a LNG regasification terminal with name plate capacity of 10 MMTPA at Dahej, in the State of Gujarat. Co. also has commissioned another LNG terminal with name plate capacity of 5 MMTPA at Kochi, in the State of Kerala. Solid Cargo Port Terminal has facilities to import/export bulk products, such as coal, steel and fertilizer.

See profile

INE347G01014 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

See profile

Analysts

Swarnendu Bhushan

Other Reports on these Companies

Motilal Oswal

MOSL : PETRONET LNG: Volumes dip, but outlook remains intact

. PETRONET LNG: Volumes dip, but outlook remains intact (PLNG IN, Mkt Cap USD4.1b, CMP INR216, TP INR298, 38% Upside, Buy) PLNG reported an in line EBITDA of INR10.6b (flat YoY, but down 9% QoQ) despite lower-than-expected utilization due to pay-or-use charges of INR4.1b. Throughput at Dahej stood at 89%, with Kochi utilization ~19%. The management expects better utilization only once spot LNG prices cool off after the winter season ends in the northern hemisphere (v/s ~USD42/mmBtu in Jul'22). Despite the immediate challenges, the management remains confident of achieving volumes of ove...

EUR 120.00

August 8, 2022 August 8, 2022 8 EN

TheScreener

For PETRONET L N G, the environment deterioration entails a downgrade to Neutral

PETRONET L N G (IN), a company active in the Oil Equipment & Services industry, now shows a lower overall rating. The independent financial analyst theScreener just confirmed the fundamental rating of 2 stars out of 4, as well as the stock market behaviour of the title as moderately risky. However, environmental deterioration penalises the general evaluation, which is downgraded to Neutral. As of the analysis date January 18, 2022, the closing price was INR 220.35 and its expected value was estimated at INR 222.09.

Free Trial

January 19, 2022 January 19, 2022 1 EN

Motilal Oswal

MOSL: PETRONET LNG (Buy)-Volumes in-line; Dahej to recover

PETRONET LNG: Volumes in-line; Dahej to recover (PLNG IN, Mkt Cap USD4.4b, CMP INR216, TP INR310, 44% Upside, Buy) Petronet LNG (PLNG)'s numbers were in line with our estimates, with volumes at 209tbtu and utilization rates at Dahej/Kochi at 88%/24% in 1QFY22. Kochi was largely unaffected, while Dahej was impacted by the second COVID wave. The management expects the utilization rate at Kochi to be ramped up by ~30% by end-FY22. On the other hand, Dahej would continue to operate at over 95% owing to tied-up contracts (16.5mmtpa of 17.5mmtpa). We remain positive on the gas story in Indi...

EUR 120.00

August 14, 2021 August 14, 2021 8 EN

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

HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality (HOMEFIRS IN, Mkt Cap USD0.9b, CMP INR802, TP INR1025, 28% Upside, Buy) HomeFirst’s 2QFY23 PAT grew 21% YoY/6% QoQ to INR543m (in-line). Credit costs grew 37% QoQ to INR50m (MOFSLe: INR31m). Underlying this, the NII grew 58% YoY to ~INR1b (in-line). ‘Other income’ grew 13% QoQ, driven primarily by higher treasury gains and investment income. Opex was 7% higher than estimated and grew 47% YoY and 14% QoQ, led by investments in new branches and resultant higher employee expenses. Disbursements grew 36%...

EUR 120.00

October 21, 2022 October 21, 2022 12 EN

Aliasgar Shakir

Aliasgar Shakir

MOSL : SHOPPERS STOP: Ticking the right boxes

. SHOPPERS STOP: Ticking the right boxes (SHOP IN, Mkt Cap USD1b, CMP INR780, TP INR805, 3% Upside, Neutral) Aided by price hikes, SHOP reported a healthy 19% revenue growth in 2QFY23 from pre-COVID levels (8% beat) on healthy (+10%) SSSG and sustained volumes. EBITDA grew 2.3x YoY (22% over pre-COVID levels), with a 540bp margin improvement. 1) A strong recovery in revenue, backed by an improved pricing; 2) expansion within the Beauty and Private Label segment; and 3) healthy annual 12/15 store additions for SHOP/Beauty are expected to drive business growth going forward. We expect a r...

EUR 120.00

October 21, 2022 October 21, 2022 13 EN

Tushar Manudhane

Tushar Manudhane

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

ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities (ERIS IN, Mkt Cap USD1.2b, CMP INR708, TP INR860, 21% Upside, Buy) Eris Lifesciences (ERIS) delivered better than expected 2QFY23 performance, led by superior traction in new launches and improved operating leverage. ERIS is notonly sustaining the momentum in its recently launched products, but it is also preparing itself for an aggressive pace of new introductions. We reiterate our earnings estimate for FY23/FY24 and continue to value ERIS at 22x 12M forward earnings to arrive at a price target of INR860. We re...

EUR 120.00

October 21, 2022 October 21, 2022 11 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

MOSL: PETRONET LNG (Buy)-Dahej continues stellar utilization

MOSL : PETRONET LNG: Volumes dip, but outlook remains intact

For PETRONET L N G, the environment deterioration entails a downgrade to Neutral

MOSL: PETRONET LNG (Buy)-Volumes in-line; Dahej to recover

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

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe