CMP:Rs 133
Deutsche Bank is reiterating the ‘Buy’ rating on Petronet LNG, with a price target of RS 150. PLNG’s Greenfield 5 mmtpa LNG terminal at Kochi and its capacity expansion at Dahej are on track for completion within the next 30 months. This should increase its capacity from 10 mmtpa currently to 15 mmtpa in FY13 and 18 mmtpa FY14. PLNG is evaluating further capacity expansion. Deutsche Bank estimates PLNG’s 19% in FY10 to 28% in FY14. GAIL’s evacuation pipeline connecting the Kochi terminals is expected to be commissioned in time for the start-up of phase I of the terminals. The contract for a new jetty at Dhej has also been awarded and is expected to be completed by June 2013. PLNG is evaluating setting up a Greenfield LNG terminal on the east coast of India as well as further expanding its existing Dahej terminal.