Petronet LNG an underperformer: Karvy Stock Broking
Karvy Stock Broking has changed its rating on Petronet LNG from buy to underperformer with a price target of Rs 49 in its April 16, 2009 researcvh report.
“We expect the revenue growth of 32.8% YoY (QoQ decline of 5.9%) to Rs 23,280 million. LNG sales volume is likely to be flat YoY as the company took planned shutdown of its import terminal at Dahej. EBIDTA margins are likely to fall to 7.6% from 12.3% a year ago. The operating profit is expected to decrease by 17.2% YoY to Rs 1,778 million. Interest is unlikely to change significantly as the incremental borrowings are being made for expansion on which the interest is being capitalized till the time of commercial commissioning of the expanded capacity. Depreciation is expected to remain flat in the absence of any new expansion coming on stream. Overall, the net profit is expected to decline by 15.5% YoY to Rs 1,015 million translating in to EPS of Rs 1.4 during the quarter.”
“For FY09, we expect the revenue growth of 9.8% to Rs 71,948 million and adjusted profit to fall by 13.1% to Rs 4,123 million. But we change our rating from BUY to Underperformer due to the recent surge in the stock price, price target of Rs 49,” says Karvy Stock Broking’s research report.
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