It is a small cap company with a market capitalization of ₹ 42,368 crore. At 9:20 a.m., the company shares were trading at ₹282 a share, a increase of 1.67 percent from the previous closing price on the stock exchange.
Petronet LNG Ltd was formed to develop, design, construct, own, and operate Liquefied Natural Gas (LNG) Import and regasification terminals in India.The company was incorporated in 1998 as a Joint Venture among GAIL, Indian Oil, Bharat Petroleum & ONGC holding 12.5% each.
Petronet LNG accounts for 33% of gas supplies in India and handles around 75% of LNG imports into the country. As per the recent shareholding pattern, the promoters of the company own 50 percent, while retail shareholders own 12.41 percent of the company.
As of March 2024, domestic institutional investors (DIIs) hold an 11.37% stake in the company, with 10.49% of that stake held by 88 mutual funds. These mutual funds collectively hold a total of 157,314,615 equity shares in the company.
The major mutual funds like Kotak Flexicap Fund hold a 1.73% stake in the company, and SBI Contra Fund holds a 1.16% stake. Petronet LNG Ltd shares have gained 35% in the last six months and 23% in the last 12 months.
The company witnessed a substantial decrease in its annual revenue, dropping from ₹59,899 crores in FY22-23 to ₹52,728 crores in FY23-24, marking a 12 percent decline. Conversely, there was a notable increase in net profit, rising by 9 percent from ₹3,240 crore to ₹3,536 crore.
The company generates 95-96% of its revenue from LNG operations and 3-4% from regasification services. It has two regasification terminals, one at Dahej, Gujarat with a capacity of 17.5 MMTPA, and another at Kochi, Kerala with a capacity of 5 MMTPA.
The company’s major customers are GAIL, IOCL, and BPCL, together accounting for approximately 95% of the company’s revenues in FY23.
Petronet LNG is expanding its regasification and storage capacities at existing terminals, diversifying its geographical presence by setting up a new terminal in Odisha, and diversifying its product portfolio by establishing a petrochemical plant in Dahej, Gujarat.
The company is also planning to enter the green hydrogen value chain. In February 2024, Petronet LNG signed a deal with QatarEnergy to renew an existing LNG supply agreement of 7.5 MTPA from 2028 to 2048.
Written by Omkar Chitnis
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