Morgan Stanley has maintained its “Equal-weight” rating on Petronet LNG stock, setting a target price of ₹400 per share, implying a potential upside of 22% from the current market price (CMP) of ₹327.50.
Key highlights from Morgan Stanley’s analysis:
- Regulatory concerns overdone: Recent worries about regulatory intervention are seen as exaggerated, with limited long-term impact.
- Near-term triggers: Details on the availability of 5 mtpa capacity for contract allocation could act as a catalyst for the stock.
- Earnings outlook: Upcoming earnings are expected to surpass market expectations, supported by higher LNG import growth in India.
- Competitive landscape: The competitive intensity from new terminals is lower than what consensus predicts, further strengthening Petronet’s market position.
- Dahej terminal advantage: The Dahej terminal remains the best-connected facility to India’s natural gas grid, ensuring a competitive edge.
- Attractive valuation: The stock trades at 12x 1-year forward P/E, which appears favorable as the company moves closer to achieving volume growth clarity in FY26 and FY27.
Morgan Stanley believes the combination of regulatory stability, strong terminal connectivity, and favorable market conditions positions Petronet LNG for steady growth.
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.
