Kotak revises Petronet LNG's target price on DCF basis to Rs. 170

Petronet LNG's (PLNG) management has further indicated the likely delay in commissioning of Kochi terminal to June-July'13 from early April'13. Accordingly, we have tweaked our estimates to reflect 1). Sluggish volumes led by continued delays in pipeline connectivity, 2). Higher spot LNG prices impacting local demand and 3). Slow conversion by end-consumers.

On a positive note, second LNG jetty at Dahej is expected to commission in Q1FY14. This will enable PLNG to accommodate more LNG ships and improve plant operating rates. We recommend BUY on PLNG with a revised DCF price target of Rs.170/share (earlier Rs.180/share).

Source : Equity Bulls

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