NSEI:PETRONET

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Executive Summary

Petronet LNG Limited engages in the import, regasification, and supply of liquefied natural gas (LNG) in India.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

How has Petronet LNG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PETRONET's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

PETRONET

5.2%

IN Oil and Gas

4.0%

IN Market


1 Year Return

8.0%

PETRONET

7.5%

IN Oil and Gas

-5.3%

IN Market

Return vs Industry: PETRONET underperformed the Indian Oil and Gas industry which returned 10.9% over the past year.

Return vs Market: PETRONET exceeded the Indian Market which returned -5.5% over the past year.


Shareholder returns

PETRONETIndustryMarket
7 Day1.2%5.2%4.0%
30 Day2.0%9.7%6.6%
90 Day21.5%36.9%22.9%
1 Year12.2%8.0%12.0%7.5%-3.3%-5.3%
3 Year31.5%19.8%42.5%27.4%2.3%-2.6%
5 Year201.1%169.1%79.6%46.8%27.7%17.8%

Price Volatility Vs. Market

How volatile is Petronet LNG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Petronet LNG undervalued compared to its fair value and its price relative to the market?

14.5x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PETRONET (₹261.25) is trading above our estimate of fair value (₹198.75)

Significantly Below Fair Value: PETRONET is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PETRONET is good value based on its PE Ratio (14.5x) compared to the Oil and Gas industry average (15.4x).

PE vs Market: PETRONET is poor value based on its PE Ratio (14.5x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: PETRONET is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: PETRONET is overvalued based on its PB Ratio (3.5x) compared to the IN Oil and Gas industry average (1.1x).


Next Steps

Future Growth

How is Petronet LNG forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PETRONET's forecast earnings growth (12.8% per year) is above the savings rate (7.2%).

Earnings vs Market: PETRONET's earnings (12.8% per year) are forecast to grow slower than the Indian market (18.8% per year).

High Growth Earnings: PETRONET's earnings are forecast to grow, but not significantly.

Revenue vs Market: PETRONET's revenue (8.4% per year) is forecast to grow faster than the Indian market (7.2% per year).

High Growth Revenue: PETRONET's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PETRONET's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has Petronet LNG performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PETRONET has high quality earnings.

Growing Profit Margin: PETRONET's current net profit margins (7.6%) are higher than last year (5.8%).


Past Earnings Growth Analysis

Earnings Trend: PETRONET's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: PETRONET's earnings growth over the past year (21.2%) is below its 5-year average (22.2% per year).

Earnings vs Industry: PETRONET earnings growth over the past year (21.2%) exceeded the Oil and Gas industry -12.3%.


Return on Equity

High ROE: PETRONET's Return on Equity (24.3%) is considered high.


Next Steps

Financial Health

How is Petronet LNG's financial position?


Financial Position Analysis

Short Term Liabilities: PETRONET's short term assets (₹70.5B) exceed its short term liabilities (₹24.2B).

Long Term Liabilities: PETRONET's short term assets (₹70.5B) exceed its long term liabilities (₹53.2B).


Debt to Equity History and Analysis

Debt Level: PETRONET's debt to equity ratio (7.2%) is considered satisfactory.

Reducing Debt: PETRONET's debt to equity ratio has reduced from 49% to 7.2% over the past 5 years.

Debt Coverage: PETRONET's debt is well covered by operating cash flow (359.8%).

Interest Coverage: PETRONET's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Next Steps

Dividend

What is Petronet LNG current dividend yield, its reliability and sustainability?

4.78%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PETRONET's dividend (4.78%) is higher than the bottom 25% of dividend payers in the Indian market (0.68%).

High Dividend: PETRONET's dividend (4.78%) is in the top 25% of dividend payers in the Indian market (2.78%)


Stability and Growth of Payments

Stable Dividend: PETRONET's dividend payments have been volatile in the past 10 years.

Growing Dividend: PETRONET's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), PETRONET's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PETRONET's dividends in 3 years are forecast to be covered by earnings (82.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Prabhat Singh (63yo)

4.83yrs

Tenure

₹14,179,901

Compensation

Shri. Prabhat Kumar Singh serves as an Independent Director at Gujarat Industries Power Company Limited since 2019. He served as Additional Independent Director of Gujarat Industries Power Company Limited  ...


CEO Compensation Analysis

Compensation vs Market: Prabhat's total compensation ($USD190.02K) is below average for companies of similar size in the Indian market ($USD1.31M).

Compensation vs Earnings: Prabhat's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Prabhat Singh
MD, CEO & Whole-time Director4.83yrs₹14.18mno data
Vinod Mishra
CFO, Director of Finance & Director2.25yrs₹5.56mno data
Rajan Kapur
VP, Company Secretary2yrs₹3.46mno data
Pankaj Wadhwa
Senior Vice President of Marketingno data₹6.45mno data
Pushp Khetrapal
President of BD & Projectsno data₹9.13mno data
Avnit Chopra
Senior Vice President of L&Dno data₹7.97mno data
Sanjay Gupta
Senior Vice President of Shippingno data₹7.65mno data
Samar Singh
Senior Vice President & Plant Headno data₹6.87mno data
Mukesh Gupta
Vice President of F&Ano datano datano data
G. Sharma
CGM & VP of Marketingno datano datano data

2.3yrs

Average Tenure

60yo

Average Age

Experienced Management: PETRONET's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Prabhat Singh
MD, CEO & Whole-time Director4.83yrs₹14.18mno data
Vinod Mishra
CFO, Director of Finance & Director2.25yrs₹5.56mno data
Manoj Jain
Additional Director0.17yrno datano data
D. Rajkumar
Nominee Director1.67yrs₹80.00k0.000050% 205.9k
Sunil Srivastava
Independent Director1.67yrs₹120.00kno data
Shashi Shanker
Non-Executive Nominee Director2.75yrsno datano data
Jyoti Shukla
Independent Director5.33yrs₹1.23mno data
Sidhartha Pradhan
Independent Director2.17yrs₹300.00kno data
Arun Kumar
Independent Director1.25yrsno datano data
Tarun Kapoor
Non-Executive Chairman0.17yrno datano data

1.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: PETRONET's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Petronet LNG Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Petronet LNG Limited
  • Ticker: PETRONET
  • Exchange: NSEI
  • Founded: 1998
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: ₹411.750b
  • Shares outstanding: 1.50b
  • Website: https://www.petronetlng.com

Number of Employees


Location

  • Petronet LNG Limited
  • World Trade Centre
  • First Floor
  • New Delhi
  • Delhi
  • 110001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532522BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2004
PETRONETNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2004

Biography

Petronet LNG Limited engages in the import, regasification, and supply of liquefied natural gas (LNG) in India. It owns and operates a LNG import and regasification terminal with name plate capacity of 17.5 MMTPA located in Dahej, Gujarat; and a LNG terminal with name plate capacity of 5 MMTPA located in Kochi, Kerala. The company was founded in 1998 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 12:37
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.