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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Petronet LNG Ltd

About the Company - Petronet LNG Ltd

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
RefineriesWorld 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. S M VaidyaNominee Director
Mr. Sandeep Kumar GuptaNominee Director
Mr. Arun Kumar SinghNominee Director
Mr. G KrishnakumarNominee Director
Mr. Milind TorawaneNominee Director
Mr. Sidhartha PradhanIndependent Director
Ms. Bhaswati MukherjeeIndependent Director
Mr. Sanjeev MitlaIndependent Director
Mr. Sundeep BhutoriaIndependent Director
Mr. Muker Jeet SharmaIndependent Director

Petronet LNG Ltd. Share Price Update

Share PriceValue
Today₹263.60
Previous Day₹257.40

Basic Stock Data of Petronet LNG Ltd

Market Cap 41,768 Cr.
Current Price 278
High / Low296/192
Stock P/E12.2
Book Value 107
Dividend Yield2.46 %
ROCE26.6 %
ROE22.8 %
Face Value 10.0

Data Source: screener.in

Competitors of Petronet LNG Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mangalore Refinery & Petrochemicals Ltd 42,974 Cr. 245289/49.29.91 67.90.38 %20.1 %31.1 % 10.0
Reliance Industries Ltd 20,21,079 Cr. 2,9872,996/2,00028.9 1,1100.30 %9.14 %8.94 % 10.0
Industry Average1,032,026.50 Cr1,616.0019.41588.950.34%14.62%20.02%10.00

Petronet LNG Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales6,2367,3287,5758,59810,81312,59711,16014,26415,98615,77613,87411,65612,532
Expenses4,8735,9936,4847,5449,51610,8659,99113,19914,81314,10112,93110,47411,317
Operating Profit1,3631,3351,0911,0541,2971,7321,1691,0641,1731,6759431,1821,215
OPM %22%18%14%12%12%14%10%7%7%11%7%10%10%
Other Income160111496982728514294184154147157
Interest85828180797880788181907575
Depreciation195192203192194194190191192192189192195
Profit before tax1,2431,1728568511,1051,5339849379941,5868181,0621,102
Tax %25%25%27%25%26%25%24%25%25%26%25%26%26%
Net Profit9278786236368231,1447507017441,181614790818
EPS in Rs6.185.864.164.245.497.625.004.674.967.874.095.275.45

Petronet LNG Ltd Quarterly Chart

Petronet LNG Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales22,69631,46737,74839,50127,13324,61630,59938,39535,45226,02343,16959,89953,838
Expenses20,86629,53136,24938,06225,54722,02427,28535,10131,46221,32337,91555,04348,823
Operating Profit1,8301,9371,4991,4391,5862,5923,3143,2943,9904,7005,2544,8565,015
OPM %8%6%4%4%6%11%11%9%11%18%12%8%9%
Other Income858984155173347316450300388306574641
Interest17811822029323921016399403336317331321
Depreciation184187308315322369412411776784768764768
Profit before tax1,5531,7201,0559851,1992,3603,0553,2343,1113,9684,4744,3354,568
Tax %32%33%32%10%24%28%32%33%13%26%25%25%
Net Profit1,0581,1497128839131,7062,0782,1552,6982,9493,3523,2403,403
EPS in Rs7.057.664.755.886.0911.3713.8514.3717.9819.6622.3521.6022.68
Dividend Payout %18%16%21%17%21%22%32%70%70%58%51%46%

Petronet LNG Ltd Profit & Loss Yearly Chart

Petronet LNG Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:14%
3 Years:19%
TTM:-8%
Compounded Profit Growth
10 Years:11%
5 Years:9%
3 Years:6%
TTM:1%
Stock Price CAGR
10 Years:17%
5 Years:5%
3 Years:3%
1 Year:26%
Return on Equity
10 Years:23%
5 Years:25%
3 Years:25%
Last Year:23%

Petronet LNG Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital7507507507507507501,5001,5001,5001,5001,5001,5001,500
Reserves2,7703,7004,2364,9395,8647,3448,2208,5669,45310,15011,92513,43514,588
Borrowings3,2763,0343,2672,6542,6152,2181,4537333,6903,6533,4383,3453,187
Other Liabilities2,4153,5993,6602,7813,1983,5174,4804,2854,0563,6304,2584,1644,684
Total Liabilities9,21111,08311,91311,12412,42613,82915,65415,08518,69918,93321,12222,44423,959
Fixed Assets2,5212,3586,2656,9436,8118,4238,0307,66511,18810,3139,5578,7908,516
CWIP3,2904,3318807471,550492203485251931,1261,259
Investments14014014090902,9354,1229893491,5501,0501,044175
Other Assets3,2604,2554,6283,3443,9752,4223,2826,0827,1577,04410,32211,48314,009
Total Assets9,21111,08311,91311,12412,42613,82915,65415,08518,69918,93321,12222,44423,959

Petronet LNG Ltd Reserves and Borrowings Chart

Petronet LNG Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,2541,8239648303,3742,0682,9962,1412,8633,5593,4722,520
Cash from Investing Activity 20-769-803-665-854-3,175-1,278-72941-927-1,063-1,137
Cash from Financing Activity -448-770-197-1,034-699-748-1,335-2,548-3,055-2,759-2,211-2,368
Net Cash Flow826285-36-8701,821-1,856383-478749-127198-985

Petronet LNG Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days212019121318191316262323
Inventory Days131310949766668
Days Payable22291931116211414181511
Cash Conversion Cycle1141018611458141320
Working Capital Days-3-8-18-2-5-8-339916
ROCE %27%26%16%15%15%26%30%30%28%29%30%27%

Petronet LNG Ltd Financial Efficiency Indicators Chart

Petronet LNG Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%50.00%
FIIs29.49%30.50%31.06%32.13%34.06%33.60%34.83%34.83%34.85%34.81%34.27%33.31%
DIIs7.00%6.32%5.11%4.65%3.23%3.38%2.93%4.05%4.11%4.55%4.97%5.93%
Public13.51%13.18%13.83%13.22%12.71%13.02%12.24%11.11%11.03%10.66%10.77%10.76%
No. of Shareholders3,48,9673,77,3454,35,4204,21,0454,19,1974,37,5364,12,0024,08,4004,03,6273,94,7603,89,1093,84,845

Petronet LNG Ltd Shareholding Pattern Chart

No. of Petronet LNG Ltd Shareholders

Petronet LNG Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Flexicap Fund - Regular Plan260000001.27527.28
SBI Contra Fund151672451.62307.59
SBI Long Term Equity Fund132605891.56268.92
SBI Balanced Advantage Fund100000000.8202.8
Kotak Equity Arbitrage Fund - Regular Plan66000000.43133.85
Kotak Equity Opportunities Fund - Regular Plan65000000.8131.82
Tata Arbitrage Fund45600001.1692.48
Invesco India Arbitrage Fund41100000.8183.35
ICICI Prudential Equity - Arbitrage Fund37980000.4877.02
Franklin India Flexi Cap Fund35000000.5570.98

Petronet LNG Ltd ROCE Trend

Petronet LNG Ltd EPS Trend

Petronet LNG Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.1722.9219.5918.0214.87
Diluted EPS (Rs.)22.1722.9219.5918.0214.87
Cash EPS (Rs.)26.3527.3924.7023.1017.08
Book Value[Excl.RevalReserv]/Share (Rs.)101.7691.1278.7174.1468.20
Book Value[Incl.RevalReserv]/Share (Rs.)101.7691.1278.7174.1468.20
Revenue From Operations / Share (Rs.)399.33287.79173.49236.35255.97
PBDIT / Share (Rs.)35.8536.9833.7229.0224.93
PBIT / Share (Rs.)30.7531.8528.5023.8522.19
PBT / Share (Rs.)28.5529.7426.2620.6821.53
Net Profit / Share (Rs.)21.2522.2619.4717.9214.34
NP After MI And SOA / Share (Rs.)22.1722.9219.5918.0214.87
PBDIT Margin (%)8.9712.8419.4312.279.73
PBIT Margin (%)7.7011.0616.4210.088.66
PBT Margin (%)7.1410.3315.138.748.41
Net Profit Margin (%)5.327.7311.227.585.60
NP After MI And SOA Margin (%)5.557.9611.297.625.80
Return on Networth / Equity (%)21.7825.1524.8924.3021.80
Return on Capital Employeed (%)23.2325.6525.1221.7526.07
Return On Assets (%)14.6116.0915.3914.3214.62
Long Term Debt / Equity (X)0.000.000.000.010.01
Total Debt / Equity (X)0.000.000.010.010.01
Asset Turnover Ratio (%)2.742.151.382.092.49
Current Ratio (X)4.083.183.932.912.40
Quick Ratio (X)3.692.973.772.712.17
Inventory Turnover Ratio (X)62.3881.1450.5658.0764.90
Dividend Payout Ratio (NP) (%)51.8645.8176.5555.4867.24
Dividend Payout Ratio (CP) (%)42.1737.4460.4243.1056.77
Earning Retention Ratio (%)48.1454.1923.4544.5232.76
Cash Earning Retention Ratio (%)57.8362.5639.5856.9043.23
Interest Coverage Ratio (X)16.2717.4815.0610.8037.80
Interest Coverage Ratio (Post Tax) (X)10.6511.529.697.8522.74
Enterprise Value (Cr.)28634.2124744.2329457.0625609.8834715.92
EV / Net Operating Revenue (X)0.470.571.130.720.90
EV / EBITDA (X)5.334.465.825.889.28
MarketCap / Net Operating Revenue (X)0.570.671.300.840.97
Retention Ratios (%)48.1354.1823.4444.5132.75
Price / BV (X)2.252.132.862.703.67
Price / Net Operating Revenue (X)0.570.671.300.840.97
EarningsYield0.090.110.080.090.05

Petronet LNG Ltd Profitability Ratios (%)

Petronet LNG Ltd Liquidity Ratios

Petronet LNG Ltd Liquidity Ratios (%)

Petronet LNG Ltd Interest Coverage Ratios (%)

Petronet LNG Ltd Valuation Ratios

Fair Value / Intrinsic Value of Petronet LNG Ltd

Fair Value: ₹304.95

The stock is undervalued by 9.70% compared to the current price ₹278

*Investments are subject to market risks

Strength and Weakness of Petronet LNG Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 24.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 1.25, which is a positive sign.
  3. The company has higher reserves (8,091.54 cr) compared to borrowings (2,812.54 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (35.69 cr) and profit (78.08 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 27.43 and average Dividend Yield of 10.78%.
  2. The stock has a high average Cash Conversion Cycle of 10.33, which may not be favorable.

Should I Buy Petronet LNG Ltd Share Now?

  • Based on the analysis of various financial indicators, it may be worth considering investment in Petronet LNG Ltd:
    1. Net Profit Margin: 5.32% (Higher values are generally favorable)
      • 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: 23.23% (Industry Average ROCE: 14.62%)
      • 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. Interest Coverage Ratio (Post Tax): 10.65 (Higher values, preferably > 2, are recommended)
      • 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.
    4. Quick Ratio: 3.69 (Higher values, preferably > 1, are recommended)
      • 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.
    5. ✓ Stock P/E: 12.2 (Industry average Stock P/E: 19.41)
      • 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.
    6. ✓ Total Debt / Equity: 0.00 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.

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