Petronet LNG Company Analysis

Company Profile  :  State owned Company which is operating Natural Gas terminal for importing Liquid Natural gas and Distribution. The company import and Re-Gasify LNG. The Company running three Terminals around the nation.

  1. Dahej
  2. Kochi
  3. Gangavaram

Regasification is a process of converting liquefied natural gas (LNG) at −162 °C (−260 °F) temperature back to natural gas at atmospheric temperature.

 

Share Holding Pattern

Financials and Ratio : 

 2010-112011-122012-132013-142014-152015-16
Revenue 13265.6622780.7431649.1537831.3339655.9527303.87
Net Profit 619.621037.541149.28711.92882.52914.02
NPM4.694.653.651.882.233.36
EPS 8.2614.1015.329.4911.7712.19
Book Value 35.7446.9359.3366.4875.8585.02
Dividend Pay out 24.2017.7216.3121.0616.9920.51
Dividend per Share 22.52.5222.5
ROE 23.1130.0425.8214.2715.5114.33
ROCE 10.6615.5015.198.389.108.53
ROA 8.3011.4810.365.977.937.37
Debt to Equity1.120.860.610.580.420.32
Asset Turnover 176.87246.39283.92316.86355.26217.97

Future Prospects :  Petronet LNG, As Importer of Natural Gas is placed in very right place. Procuring Natural Gas makes the company at risk of changing price of Natural Gas. Though it has Contract for acquiring Natural Gas but still there is always risk.

But Indian companies planned to increase the production of natural gas and Govt initiatives to give Gas supply, maybe it is piped or By cylinder, set to increase the importance of the company. Reduction of cost and Increased demand.

Though Financials are volatile but as the company is setup by State run Companies, risk of failure is low. The business is also diversified. It is not depending upon single terminal.

Like every other business, this also have cost, mostly fixed.

  1. Liquification of gas $1.1 per Million Cubic Feet – /+ $0.2
  2. Tanker and other shipping and operating costs $0.7 – $1 Million Cubic Feet
  3. Regasification $0.35 Million Cubic feet.

Even the company is outperforming Indices, but the Intrinsic value of the business is high.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter