petronet LNG share price: Buy Petronet LNG, target price Rs 340: Motilal Oswal

Motilal Oswal has buy call on with a target price of Rs 340. The current market price of Petronet LNG Ltd. is Rs 241.6.

Petronet LNG Ltd., incorporated in the year 1998, is a Large Cap company (having a market cap of Rs 36217.50 Crore) operating in Gas & Petroleum sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 7427.90 Crore, up 16.47 % from last quarter Total Income of Rs 6377.66 Crore and down -17.42 % from last year same quarter Total Income of Rs 8994.39 Crore. Company reported net profit after tax of Rs 867.08 Crore in latest quarter.

Investment Rationale
The stock trades at 9.7x FY23E EPS of INR24.8 and 5.7x FY23E EV/EBITDA, with expected EBITDA CAGR of ~11% over FY20-23E. We value PLNG on a DCF basis to arrive at a fair value of INR 340

Promoter/FII Holdings
Promoters held 50 per cent stake in the company as of Dec 30, 2020, while FIIs held 29.5 per cent, DIIs 7 per cent and public and others 13.5 per cent.