Petronet LNG - 4QFY13 results - Kotak

Dahej terminal expansion, Kochi terminal progress and overall LNG prices remains the key.

- Petronet LNG Ltd. has reported Q4FY13 result which is lower than our estimates mainly on account of lower volumes and higher operating expenditure. The fall in re-gasification volume is primarily due to lesser gas imported by Gail and GSPC as international LNG prices jumped to USD 18-19/mmbtu. PLNG has reported a PAT of Rs. 2.5 Bn in Q4FY13 down by 23.0% QoQ, quarterly EPS of Rs.3.27.

- The Company has proposed a dividend of Rs. 2.50 per share for FY13, resulting in a dividend yield of ~1.8%.

- For FY14E, we expect revenues of Rs. 372 bn (up 18.3% YoY), operating margin of 5.0% and PAT of Rs.9.3 bn, accordingly, we expect PLNG to report EPS of Rs.12.39 and CEPS of Rs.17.6 in FY14E. On the basis of our estimates, the stock at current market price of Rs.140 is fairly valued at 7.0x EV/EBIDTA, 11.2x P/E, 7.9x P/CEPS and 2.01x P/BV on FY14E earnings. We recommend Accumulate on PLNG with a price target of Rs.168 (earlier Rs.170). We believe the progress on Kochi terminal and overall LNG prices needs to be closely monitored.

Source : Equity Bulls

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