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Last Updated on: 18 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Petronet LNG Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 17, 2024, 9:27 pm

Market Cap 51,068 Cr.
Current Price 340
High / Low 385/205
Stock P/E13.0
Book Value 123
Dividend Yield2.94 %
ROCE26.4 %
ROE22.2 %
Face Value 10.0
PEG Ratio2.34

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Petronet LNG Ltd

Competitors of Petronet LNG Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Petronet LNG Ltd 51,068 Cr. 340 385/20513.0 1232.94 %26.4 %22.2 % 10.0
Mahanagar Gas Ltd 12,250 Cr. 1,240 1,989/1,07510.7 5602.42 %36.6 %27.8 % 10.0
Indraprastha Gas Ltd 26,695 Cr. 381 571/30616.6 1342.36 %28.8 %21.8 % 2.00
Confidence Petroleum India Ltd 2,470 Cr. 76.9 120/62.635.4 40.20.13 %13.5 %10.2 % 1.00
Adani Total Gas Ltd 78,598 Cr. 715 1,198/546112 35.60.03 %21.2 %20.5 % 1.00
Industry Average34,216.20 Cr550.5837.54178.561.58%25.30%20.50%4.80

All Competitor Stocks of Petronet LNG Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales7,5758,59810,81312,59711,16014,26415,98615,77613,87411,65612,53214,74713,793
Expenses6,4847,5449,51610,8659,99113,19914,81314,10112,93110,47411,31713,04112,689
Operating Profit1,0911,0541,2971,7321,1691,0641,1731,6759431,1821,2151,7061,104
OPM %14%12%12%14%10%7%7%11%7%10%10%12%8%
Other Income496982728514294184154147157156157
Interest81807978807881819075757071
Depreciation203192194194190191192192189192195195194
Profit before tax8568511,1051,5339849379941,5868181,0621,1021,597996
Tax %27%25%26%25%24%25%25%26%25%26%26%25%26%
Net Profit6236368231,1447507017441,1816147908181,191738
EPS in Rs4.164.245.497.625.004.674.967.874.095.275.457.944.92

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales31,46737,74839,50127,13324,61630,59938,39535,45226,02343,16959,89952,728
Expenses29,53136,24938,06225,54722,02427,28535,10131,46221,32337,91555,04347,522
Operating Profit1,9371,4991,4391,5862,5923,3143,2943,9904,7005,2544,8565,207
OPM %6%4%4%6%11%11%9%11%18%12%8%10%
Other Income8984155173347316450300388306574617
Interest11822029323921016399403336317331290
Depreciation187308315322369412411776784768764777
Profit before tax1,7201,0559851,1992,3603,0553,2343,1113,9684,4744,3354,757
Tax %33%32%10%24%28%32%33%13%26%25%25%26%
Net Profit1,1497128839131,7062,0782,1552,6982,9493,3523,2403,536
EPS in Rs7.664.755.886.0911.3713.8514.3717.9819.6622.3521.6023.57
Dividend Payout %16%21%17%21%22%32%70%70%58%51%46%13%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-38.03%24.02%3.40%86.86%21.81%3.71%25.20%9.30%13.67%-3.34%9.14%
Change in YoY Net Profit Growth (%)0.00%62.05%-20.62%83.46%-65.05%-18.10%21.49%-15.89%4.36%-17.01%12.48%

Petronet LNG Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:7%
3 Years:27%
TTM:2%
Compounded Profit Growth
10 Years:18%
5 Years:10%
3 Years:6%
TTM:15%
Stock Price CAGR
10 Years:13%
5 Years:4%
3 Years:16%
1 Year:58%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:24%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:54 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7507507507507501,5001,5001,5001,5001,5001,5001,5001,500
Reserves3,7004,2364,9395,8647,3448,2208,5669,45310,15011,92513,43515,46316,995
Borrowings3,0343,2672,6542,6152,2181,4537333,6903,6533,4383,3453,0082,810
Other Liabilities3,5993,6602,7813,1983,5174,4804,2854,0563,6304,2584,2105,1314,421
Total Liabilities11,08311,91311,12412,42613,82915,65415,08518,69918,93321,12222,49025,10225,726
Fixed Assets2,3586,2656,9436,8118,4238,0307,66511,18810,3139,5578,7908,1477,753
CWIP4,3318807471,550492203485251931,1261,5521,875
Investments14014090902,9354,1229893491,5501,0501,044175456
Other Assets4,2554,6283,3443,9752,4223,2826,0827,1577,04410,32211,52915,22715,642
Total Assets11,08311,91311,12412,42613,82915,65415,08518,69918,93321,12222,49025,10225,726

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,8239648303,3742,0682,9962,1412,8633,5593,4722,5194,873
Cash from Investing Activity +-769-803-665-854-3,175-1,278-72941-927-1,063-1,136-1,062
Cash from Financing Activity +-770-197-1,034-699-748-1,335-2,548-3,055-2,759-2,211-2,368-2,154
Net Cash Flow285-36-8701,821-1,856383-478749-127198-9851,657

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-2.00-2.00-1.00-1.000.002.00-730.000.001.002.001.002.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days201912131819131626232325
Inventory Days131094976666812
Days Payable29193111621141418151122
Cash Conversion Cycle4101861145814132014
Working Capital Days-8-18-2-5-8-33991612
ROCE %26%16%15%15%26%30%30%28%29%30%27%26%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%
FIIs32.13%34.06%33.60%34.83%34.83%34.85%34.81%34.27%33.31%26.82%26.22%25.58%
DIIs4.65%3.23%3.38%2.93%4.05%4.11%4.55%4.97%5.93%10.95%11.37%12.86%
Public13.22%12.71%13.02%12.24%11.11%11.03%10.66%10.77%10.76%12.21%12.41%11.56%
No. of Shareholders4,21,0454,19,1974,37,5364,12,0024,08,4004,03,6273,94,7603,89,1093,84,8454,33,6284,54,3194,56,043

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Flexicap Fund - Regular Plan26,000,0001.7807.4314,777,7572024-12-1675.94%
SBI Contra Fund17,474,3151.83542.6614,777,7572024-12-1618.25%
SBI Multicap Fund14,777,7572.91458.9214,777,7572024-12-160%
SBI Long Term Equity Fund13,801,9211.83428.6214,777,7572024-12-16-6.6%
SBI Flexi Cap Fund11,718,4801.75363.9214,777,7572024-12-16-20.7%
SBI Balanced Advantage Fund10,000,0001.04310.5514,777,7572024-12-16-32.33%
Kotak Equity Opportunities Fund - Regular Plan8,000,0001.16248.4414,777,7572024-12-16-45.86%
Tata Equity P/E Fund - Regular Plan5,957,0002.39184.9914,777,7572024-12-16-59.69%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%5,957,0002.39184.9914,777,7572024-12-16-59.69%
Kotak Equity Arbitrage Fund - Regular Plan5,604,0000.4174.0314,777,7572024-12-16-62.08%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)24.3522.1722.9219.5918.02
Diluted EPS (Rs.)24.3522.1722.9219.5918.02
Cash EPS (Rs.)28.6926.3527.3924.7023.10
Book Value[Excl.RevalReserv]/Share (Rs.)116.07101.7691.1278.7174.14
Book Value[Incl.RevalReserv]/Share (Rs.)116.07101.7691.1278.7174.14
Revenue From Operations / Share (Rs.)351.53399.33287.79173.49236.35
PBDIT / Share (Rs.)38.7635.8536.9833.7229.02
PBIT / Share (Rs.)33.5830.7531.8528.5023.85
PBT / Share (Rs.)31.6528.5529.7426.2620.68
Net Profit / Share (Rs.)23.5121.2522.2619.4717.92
NP After MI And SOA / Share (Rs.)24.3522.1722.9219.5918.02
PBDIT Margin (%)11.028.9712.8419.4312.27
PBIT Margin (%)9.557.7011.0616.4210.08
PBT Margin (%)9.007.1410.3315.138.74
Net Profit Margin (%)6.685.327.7311.227.58
NP After MI And SOA Margin (%)6.925.557.9611.297.62
Return on Networth / Equity (%)20.9721.7825.1524.8924.30
Return on Capital Employeed (%)23.5723.2325.6525.1221.75
Return On Assets (%)14.3114.6116.0915.3914.32
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.000.010.01
Asset Turnover Ratio (%)2.182.742.151.382.09
Current Ratio (X)3.104.083.183.932.91
Quick Ratio (X)2.753.692.973.772.71
Inventory Turnover Ratio (X)35.4962.3881.1450.5658.07
Dividend Payout Ratio (NP) (%)41.0651.8645.8176.5555.48
Dividend Payout Ratio (CP) (%)33.8642.1737.4460.4243.10
Earning Retention Ratio (%)58.9448.1454.1923.4544.52
Cash Earning Retention Ratio (%)66.1457.8362.5639.5856.90
Interest Coverage Ratio (X)20.0716.2717.4815.0610.80
Interest Coverage Ratio (Post Tax) (X)13.1810.6511.529.697.85
Enterprise Value (Cr.)32088.3028634.2124744.2329457.0625609.88
EV / Net Operating Revenue (X)0.600.470.571.130.72
EV / EBITDA (X)5.525.334.465.825.88
MarketCap / Net Operating Revenue (X)0.740.570.671.300.84
Retention Ratios (%)58.9348.1354.1823.4444.51
Price / BV (X)2.272.252.132.862.70
Price / Net Operating Revenue (X)0.740.570.671.300.84
EarningsYield0.090.090.110.080.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Petronet LNG Ltd as of December 18, 2024 is: 365.41

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 18, 2024, Petronet LNG Ltd is Undervalued by 7.47% compared to the current share price 340.00

Intrinsic Value of Petronet LNG Ltd as of December 18, 2024 is: 385.74

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 18, 2024, Petronet LNG Ltd is Undervalued by 13.45% compared to the current share price 340.00

Last 5 Year EPS CAGR: 5.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 2.50, which is a positive sign.
  3. The company has higher reserves (9,253.08 cr) compared to borrowings (2,762.92 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (36.75 cr) and profit (84.50 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 10.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Petronet LNG Ltd:
    1. Net Profit Margin: 6.68%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.57% (Industry Average ROCE: 25.3%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 20.97% (Industry Average ROE: 20.5%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 13.18
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.75
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13 (Industry average Stock P/E: 37.54)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Petronet LNG Ltd. is a Public Limited Listed company incorporated on 02/04/1998 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1998PLC093073 and registration number is 093073. Currently Company is involved in the business activities of Support activities for petroleum and natural gas mining. Company’s Total Operating Revenue is Rs. 43168.57 Cr. and Equity Capital is Rs. 1500.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
LPG/CNG/PNG/LNG Bottling/DistributionWorld Trade Centre, New Delhi Delhi 110001investors@petronetlng.in
http://www.petronetlng.in
Management
NamePosition Held
Mr. Pankaj JainChairman & Non-Exe.Director
Mr. Akshay Kumar SinghManaging Director & CEO
Mr. V K MishraDirector - Finance & CFO
Mr. Pramod NarangDirector - Technical
Mr. Sundeep BhutoriaIndependent Director
Mr. Raian Nogi KaranjawalaIndependent Director
Ms. Bhaswati MukherjeeIndependent Director
Mr. Sanjeev MitlaIndependent Director
Mr. Muker Jeet SharmaIndependent Director
Mr. Arun Kumar SinghNominee Director
Mr. Milind TorawaneNominee Director
Mr. Sandeep Kumar GuptaNominee Director
Mr. G KrishnakumarNominee Director
Mr. S M VaidyaNominee Director

FAQ

What is the latest intrinsic value of Petronet LNG Ltd?

The latest intrinsic value of Petronet LNG Ltd as on 18 December 2024 is ₹365.41, which is 7.47% higher than the current market price of ₹340.00. The stock has a market capitalization of 51,068 Cr. and recorded a high/low of ₹385/205 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹16,995 Cr and total liabilities of ₹25,726 Cr.

What is the Market Cap of Petronet LNG Ltd?

The Market Cap of Petronet LNG Ltd is 51,068 Cr..

What is the current Stock Price of Petronet LNG Ltd as on 18 December 2024?

The current stock price of Petronet LNG Ltd as on 18 December 2024 is 340.

What is the High / Low of Petronet LNG Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Petronet LNG Ltd stocks is 385/205.

What is the Stock P/E of Petronet LNG Ltd?

The Stock P/E of Petronet LNG Ltd is 13.0.

What is the Book Value of Petronet LNG Ltd?

The Book Value of Petronet LNG Ltd is 123.

What is the Dividend Yield of Petronet LNG Ltd?

The Dividend Yield of Petronet LNG Ltd is 2.94 %.

What is the ROCE of Petronet LNG Ltd?

The ROCE of Petronet LNG Ltd is 26.4 %.

What is the ROE of Petronet LNG Ltd?

The ROE of Petronet LNG Ltd is 22.2 %.

What is the Face Value of Petronet LNG Ltd?

The Face Value of Petronet LNG Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Petronet LNG Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE