The key valuation ratios of Petronet LNG Ltd's currently when compared to its past seem to suggest it is in the Fair zone.
3. Is Petronet LNG Ltd a good buy now?
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Petronet LNG Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
10 Year X-Ray of Petronet LNG:
Analysis of Financial Track Record
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
What is a Financial Track Record? How to read this chart in order to understand the data present here?
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Petronet LNG Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation ⓘ
Value Creation Index Colour Code Guide
ⓘ
Mar'15
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
TTM
ROCE % ⓘ
15.4%
16.4%
26.3%
30%
30.3%
31.7%
36.8%
37.3%
32.2%
31%
-
Value Creation Index ⓘ
0.1
0.2
1.3
1.7
1.7
1.8
2.3
2.3
1.9
1.8
-
Growth Parameters ⓘ
Growth Parameters Colour Code Guide
ⓘ
Sales ⓘ
39,501
27,133
24,616
30,599
38,395
35,452
26,023
43,169
59,899
52,728
50,980
Sales YoY Gr.
-
-31.3%
-9.3%
24.3%
25.5%
-7.7%
-26.6%
65.9%
38.8%
-12%
-
Adj EPS ⓘ
5.6
5.7
10.5
12.8
13.5
19.3
19.1
22.5
22.4
23.5
26.2
YoY Gr.
-
0.9%
86.2%
21.9%
5.3%
43.2%
-1.3%
18.1%
-0.5%
4.9%
-
BVPS (₹) ⓘ
37.9
44.1
54
64.8
67.1
73
77.7
89.5
99.6
113.1
129.1
Adj Net Profit ⓘ
840
847
1,578
1,923
2,025
2,900
2,861
3,380
3,364
3,528
3,927
Cash Flow from Ops. ⓘ
830
3,374
2,068
2,996
2,141
2,863
3,559
3,472
2,519
4,873
-
Debt/CF from Ops. ⓘ
3.2
0.8
1.1
0.5
0.3
0.2
0.1
0.1
0.1
0.1
-
CAGR ⓘ
CAGR Colour Code Guide
ⓘ
9 Years
5 Years
3 Years
1 Years
Sales ⓘ
3.3%
6.6%
26.5%
-12%
Adj EPS ⓘ
17.3%
11.7%
7.2%
4.9%
BVPSⓘ
12.9%
11%
13.4%
13.6%
Share Price
13.1%
6.8%
11.6%
1.1%
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide
ⓘ
Mar'15
Mar'16
Mar'17
Mar'18
Mar'19
Mar'20
Mar'21
Mar'22
Mar'23
Mar'24
TTM
Return on Equity % ⓘ
15.7
13.8
21.5
21.6
20.5
27.6
25.3
27
23.7
22.1
21.6
Op. Profit Mgn % ⓘ
3.6
5.9
10.9
11
8.8
12
18.1
12.4
8.5
10
10.8
Net Profit Mgn % ⓘ
2.1
3.1
6.4
6.3
5.3
8.2
11
7.8
5.6
6.7
7.7
Debt to Equity ⓘ
0.5
0.4
0.3
0.2
0.1
0
0
0
0
0
0
Working Cap Days ⓘ
29
45
60
52
35
30
38
37
48
79
53
Cash Conv. Cycle ⓘ
13
16
8
6
4
7
12
11
15
18
39
Recent Performance Summary
Sales growth is growing at healthy rate in last 3 years 26.54%
Return on Equity has declined versus last 3 years average to 21.60%
Net Profit has been subdued in last 3 years 7.22%
Sales growth is not so good in last 4 quarters at -2.20%
Stock pulse is a format where we explore the most important questions to understand the company's performance.
What is the current position of the company, and its future outlook?
The company specializes in the niche sectors of LNG transportation, storage, and regasification. It currently holds ownership and operational control over two regasification terminals located in Dahej (Gujarat), and Kochi (Kerala), boasting a combined capacity of 22.5 million metric tonnes per annum (MMTPA). The company plays a pivotal role in the energy sector, accounting for 40% of the nation's gas supplies and overseeing nearly 75% of all LNG imports in India.
The Government of India (GoI) has established an ambitious goal to elevate the current share of natural gas in the Primary Energy basket from its present level of 5.74% to 15% by the year 2030. This endeavor aims to transform India into a gas-based economy and a prominent global manufacturing hub. As a consequence of this strategic vision, India anticipates a significant surge in its gas demand, escalating from approximately 160 Million Metric Standard Cubic Meters per Day (MMSCMD) to over 550 MMSCMD by the end of this decade (19% CAGR).
(Source: Company, Energy Institute Statistical Review of World Energy 2022)
What is the key catalyst?
India is a gas-deficient country, relying on imports to meet ~40% of its natural gas consumption.
(Source: PPAC)
In line with the Government of India's commitment to elevate the current share of natural gas in the Primary Energy basket from approximately 6% to 15% by the year 2030, and considering the robust consumption profile, the demand for natural gas is projected to increase to 490 Million Metric Standard Cubic Meters per Day (MMSCMD) by FY2035, demonstrating an impressive 8% CAGR during the period from FY21 to FY35.
(Source: PPAC; CRIS)
In order to meet the expanding gas requirements of India, it is anticipated that LNG imports will rise from approximately 41% of the total natural gas consumption in the country in FY23 to a substantial 75% by the FY35.
What is the Capex plan ahead?
The company has unveiled an ambitious capital expenditure plan amounting to Rs. ~21,000 Cr, with the objective of diversifying into the petrochemical industry. Over the next four years, the company will be establishing a petrochemical facility focused on Propane Dehydrogenation and Polypropylene (PDH-PP). The combined production capacity of this is 750,000 metric tonnes per annum (KTPA), along with an ethane handling terminal. The plant is projected to become operational by FY28. According to management guidance, operating at full capacity, this facility is expected to generate an EBITDA of around Rs. 4,000 Cr and a PAT of approximately Rs. 2,000 Cr.
Does the company have a dividend payout policy?
Petronet LNG has established a commendable track record of consistently distributing dividends to its shareholders, and this practice is anticipated to persist in the future. The company is committed to providing its investors with the following on an annual basis:
a) A reasonable yield on their investment.
b) An adequate dividend payout, which will not be less than 30% of the net profit after tax or 5% of its Net Worth, whichever of these figures is higher.
(Source: Moneyworks4me research)
What are the concern areas?
Short term Concern:
Lower-than-expected re-gasification volumes at the Dahej terminal, especially in the event of weakened LNG demand due to fluctuating spot LNG prices, could impact the company's revenue. Additionally, any delays in the Dahej expansion plan may pose challenges for the company in the short term.
Long term Concern:
The long-term concern primarily revolves around the capital allocation for the petrochemical plant, which involves a higher capital expenditure. This allocation may raise concerns as it represents an unrelated investment compared to the company's existing core business. It's important to note that, with the exception of a few, most players in the petrochemical industry struggle to achieve satisfactory Return on Equity (ROE). This could potentially lead to a decrease in the company's future ROE.
Company share prices are keep on changing according to the market conditions. The closing price of Petronet LNG on 20-May-2025 16:59 is ₹316.8.
What is the market cap of Petronet LNG?
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 20-May-2025 16:59 the market cap of Petronet LNG stood at ₹48,112.5.
What is the P/E ratio of Petronet LNG?
The latest P/E ratio of Petronet LNG as of 20-May-2025 16:59 is 12.25.
What is the P/B ratio of Petronet LNG?
The latest P/B ratio of Petronet LNG as of 20-May-2025 16:59 is 2.48.
What is the 52-week high and low of Petronet LNG?
The 52-week high of Petronet LNG is ₹384.9 and the 52-week low is ₹253.4.
What is the TTM revenue of Petronet LNG?
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Petronet LNG is ₹50,980 ( Cr.) .
About Petronet LNG Ltd
Petronet LNG Limited formed on April 2, 1998 as Joint Venture Company (JVC) having 50% shareholding of leading 4 Oil & Gas PSUs by GOI order dated July 4, 1997. An Independent Board managed JVC created for development of facilities for the import, storage and regasification of Liquefied Natural Gas. With equity participation from four Oil & Gas Maharatanas viz. Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation Limited (IOCL), GAIL (India) Limited (GAIL) and Bharat Petroleum Corporation Limited (BPCL).
Petronet LNG Limited, one of the fastest growing world-class companies in the Indian energy sector, has set up the country’s first LNG receiving and regasification terminal at Dahej, Gujarat and another terminal at Kochi, Kerala. While the Dahej Terminal. Petronet LNG is at the forefront of India’s all-out national drive to ensure the country’s energy security in the years to come. Formed as a Joint Venture Company by the Government of India to import LNG and set up LNG terminals in the country, it involves India’s leading oil and natural gas industry players.
Business area of the company:
Petronet LNG is involved in the business of import and regasification of LNG and supply to BPCL, GAIL, IOCL and others.
Milestones:
1998: Formed to import LNG and setup LNG terminals.
1999: LNG SPA with RasGas of Qatar
2000: Dehaj terminal construction started
2001: Shipping agreements Disha & Raahi
2003: Gas sales agreements with GAIL, IOCL, BPCL.
2004: IPO launched at price rate of Rs 15 for tying up 35% of the share capital.
2004: PLL commences supplying regasified LNG.
2007: 24 spot LNG cargoes to revive Dabhol power plant/MOU with GMB for second jetty.
2009: Dahej expansion to 10 MMTPA/SPA with Exxon mobile for supplies from Australia.
2010: Gas sales agreements with GAIL, IOCL, BPCL for Kochi
2012: Regas agreement with GAIL for Dehaj expansion.
2013: Kochi terminal commissioned/ 1000th cargo in Dehaj terminal.
2013: Shipping agreement with Prachi/ Regas agreement with GSPC and BPCL for Dehaj expansion.
2014: EPC contract for Dehaj expansion/ Regas agreement with IOC for Dehaj expansion.
2016: Dehaj terminal expanded to 15 MTPA.
2017: Loaded 500th load at Qatar in a record time of 13 years.
2019: Dehaj expansion from 15 to 17.5 MTPA.
2020: Petronet LNG signs supplementary MoU with Tellurian.
Company quality is determined using minimum hurdle rate for return on capital employed and free cash flows for last 10 years.
Companies with smaller size have higher hurdle rate.
High quality stocks are important for long term investment.
Value
Valuation is computed by comparing relevant price multiples versus industry and its own history.
One unique and very important modification is our adjustment for company's financials for cyclicality and normalized profitability.
or based on whether current ratio is lower or higher than median values. See graph for better assessment.
Valuation is important for long term investment.
Actual valuation done by our Equity Analysts may differ from the Free DeciZen maker valuation. Subscribe to our premium products for more information on actual valuation
Price
Price rating is given based on stock price strength using moving averages and relative strength on shorter timeframe.
Short term time frame has little to no significance for long term investing but it can help in deciding how fast or how slow one can add a stock top your portfolio.
Only after a stock satisfies Quality and Value parameters, use price trend to build a position. Add slowly if price trend is Red or Orange. Add quickly if price trend is Green.
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Performance Consistency: This is measure based on whether the fund has beaten the benchmark index consistently. For
this we compare the 3-year rolling returns of the fund with the benchmark for a minimum of 5 years and preferable 10
years. The period of rolling is one month and holding period is 3 years. Fund are color-coded Green on Performance when
the fund beats the benchmark more than 90% of the time. It is Orange if it beats 80% to 90% of the time and Red if less
than 80%. Funds with less than 5 year data are color-coded Grey.
Quality of Portfolio Holding: Moneyworks4Me has color-coded stocks as Green, Orange and Red based on whether the
company's performance has generated a ROCE above a threshold level (cost of capital) over 10 years (minimum 6 years) and
generated positive Free Cash Flow. For Banks it checks whether ROE is greater than 15% and sales has grown over previous
year. Stocks that perform consistently on these combined metrics are color-coded Green (min score 14 out of 20), Orange
(between 8 and 14) and Red (less than 8 out of 20).
Fund are color-coded Green provided the portfolio has 70% holding in Green stocks but not more than 20% in Red stocks.
Funds with more than 20% Red stocks in the portfolio are color-coded Red. The rest are Orange funds
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The
ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number
that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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