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Check Before You Invest : Petronet LNG Ltd

BSE: 532522 NSE: PETRONET ISIN: INE347G01014
  |   Sector:  Oil & Gas   |   Industry:  Industrial Gases & Fuels

Snapshot

Q.1 Which industry/sub-sector does Petronet LNG Ltd belong to?
Petronet LNG Ltd belongs to the Oil & Gas sector, operating specifically within the Industrial Gases & Fuels segment.
Q.2 Is Petronet LNG Ltd a good quality company?
Petronet LNG Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Petronet LNG Ltd undervalued or overvalued?
Petronet LNG Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Petronet LNG Ltd a good buy now?
Petronet LNG Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Petronet LNG Ltd?
Petronet LNG Ltd revenue growth is -3.3% for FY-2025 , which is below its 5 year CAGR of 7.5% , indicating slower growth.
Q.2 Gross Profit margin of Petronet LNG Ltd?
Petronet LNG Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025 , which is in line with its 5 year median of 11.9% , indicating stable margins.
Q.3 Operating Profit Margin of Petronet LNG Ltd?
Petronet LNG Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.95% for FY-2025 , which is in line with its 5 year median of 10.95% indicating stable margins.
Q.4 Net Profit Margin of Petronet LNG Ltd?
Petronet LNG Ltd Net Profit Margin is 7.7% for FY-2025 , is in line with with its 5 year median of 7.7%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 11.9 11.9
Operating Profit Margin 10.95 10.95
Net Profit Margin 7.7 7.7
Q.5 Return on Asset of Petronet LNG Ltd?
Petronet LNG Ltd Return on Asset is 13.41%, which is below its 5 year historical median of 13.62%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Petronet LNG Ltd?
Petronet LNG Ltd Return on equity is 21.61% for FY-2025 , which is below its historical median of 22.85%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Petronet LNG Ltd?
Petronet LNG Ltd Return on capital employed is 29.72% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Petronet LNG Ltd?
Petronet LNG Ltd Cash conversion cycle is 13 days, above its historical median of 13 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.74 1.86
ROE 21.61 22.85
ROCE 29.72 32.24
Cash Conversion Cycle 13 days 13 days
Q.9 Debt to Equity ratio of Petronet LNG Ltd?
Petronet LNG Ltd Debt-to-Equity ratio is 0.02 , which is above with the industry average of 0 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Petronet LNG Ltd?
Petronet LNG Ltd Debt to cash flow from operations is 0.11 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Petronet LNG Ltd?
Promoters hold 50.00% of the Petronet LNG Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Petronet LNG Ltd vs industry peers?
Petronet LNG Ltd revenue CAGR is 7.54% , compared to the industry median CAGR of 3.56% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 50,979.6 1,242.7
Gross Profit 6,066.6 386.3
Operating Profit 5,524 348.5
Net Profit 3,926 224
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.74 0.26
ROE 21.61 6.52
ROCE 29.72 8.83
Cash Conversion Cycle (days) 12.55 -15

Valuation & price assessment

Q.1 Stock return of Petronet LNG Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.7% 4.4% 5.4% -10.1%
Q.3 Valuation ratios of Petronet LNG Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 11.39 14.02 21.31
Price to Book 1.9 3.25 2.14
Price to Sales 0.88 1.18 1.22
EV to EBITDA 4.99 7.82 5.43

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