JP Morgan has reiterated its “Overweight” rating on Petronet LNG (PLNG), with a target price of ₹377 per share, suggesting a potential upside of 15% from the current market price (CMP) of ₹327.50.
Key highlights from JP Morgan’s analysis:
- Low probability of tariff regulation:
- The Petroleum and Natural Gas Regulatory Board (PNGRB) currently lacks the authority to regulate regasification tariffs, minimizing the risk of adverse regulatory changes.
- Capacity expansion and seasonal demand:
- Petronet LNG is set to benefit from a 5 MTPA capacity expansion by March 2025.
- Seasonal power demand and an annual 5% tariff increase in January are expected to further boost revenues.
- Regas terminal dynamics:
- Regas terminals are not strictly monopolistic, as they do not have captive consumers, but Petronet’s strategic positioning ensures it remains competitive.
JP Morgan remains optimistic about Petronet’s near-term growth, supported by capacity expansion, favorable demand trends, and a minimal regulatory risk environment.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial advisor before making investment decisions.
