Check Before You Invest : Petronet LNG Ltd

Q: 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: Is Petronet LNG Ltd a good quality company?

Petronet LNG Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Petronet LNG Ltd undervalued or overvalued?

Petronet LNG Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 10.54, Historic Median: 11.26. Price to Book, Current: 1.86, Historic Median: 2.32. Price to Sales, Current: 0.93, Historic Median: 0.85. EV to EBITDA, Current: 4.87, Historic Median: 5.51

Q: 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

Q: 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 7.54%, indicating slower growth.

Q: 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: 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: Net Profit Margin of Petronet LNG Ltd?

Petronet LNG Ltd Net Profit Margin is 7.7% for FY-2025, is in line with its 5-year median of 7.7%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.9, Historic Median: 11.9. Operating Profit Margin (%), Current: 10.95, Historic Median: 10.95. Net Profit Margin (%), Current: 7.7, Historic Median: 7.7

Q: Return on Asset of Petronet LNG Ltd?

Petronet LNG Ltd Return on Asset is 13.41%, which is in line with its 5-year historical median of 13.62%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Petronet LNG Ltd?

Petronet LNG Ltd Return on capital employed is 29.72% for FY-2025, which is below its 5-year historical median of 32.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Petronet LNG Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Petronet LNG Ltd undervalued or overvalued?

Petronet LNG Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	10.54	11.26
Price to Book	1.86	2.32
Price to Sales	0.93	0.85
EV to EBITDA	4.87	5.51

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 7.54%, 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 its 5-year median of 7.7%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.9	11.9
Operating Profit Margin (%)	10.95	10.95
Net Profit Margin (%)	7.7	7.7

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Petronet LNG Ltd?

Petronet LNG Ltd Return on Asset is 13.41%, which is in line with its 5-year historical median of 13.62%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Petronet LNG Ltd?

Petronet LNG Ltd Return on capital employed is 29.72% for FY-2025, which is below its 5-year historical median of 32.24%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Petronet LNG Ltd?

Petronet LNG Ltd Return on equity is 21.61% for FY-2025, which is below its 5-year historical median of 22.85%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Petronet LNG Ltd?

Petronet LNG Ltd Cash conversion cycle is 13 days, in line with its 5-year historical median of 13 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.74	1.86
ROE (%)	21.61	22.85
ROCE (%)	29.72	32.24
Cash Conversion Cycle	13 days	13 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Petronet LNG Ltd?

Petronet LNG Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.05, indicating lower 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

D: Promoter shareholding and pledge status of Petronet LNG Ltd?

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)

E: How does Petronet LNG Ltd performance compare with that of its Peers?

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 7.33%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-3.3	7.3
Gross Profit Growth (%)	9.9	13.8
Operating Profit Growth (%)	6.1	9.8
Net Profit Growth (%)	11	-0.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.74	1.19
ROE (%)	21.61	17.94
ROCE (%)	29.72	24.95
Cash Conversion Cycle (days)	12.55	-8

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 7.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	7.5%	2.9%	6.5%	-14.7%

Q.2 Valuation ratios of Petronet LNG Ltd vs historical?

The current P/E ratio of 10.54 is lower than its historical median of 11.26, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.54	11.26	11.53
Price to Book	1.86	2.32	2.25
Price to Sales	0.93	0.85	1.37
EV to EBITDA	4.87	5.51	5.42

Check more companies

1. GAIL (India)

2. HPCL

3. Adani Total Gas

4. Oil India

5. Linde India

6. Petronet LNG

Check trending companies

1. Netweb Technologies India Ltd.

2. E.I.D. - Parry (India) Ltd.

3. Torrent Power Ltd.

4. Jyoti CNC Automation Ltd.

5. 3M India Ltd.

Check Before You Invest : Petronet LNG Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.