The PETRONET stock chart is looking good for buying right now. It had a V shape recovery, hitting the lowest point at 190 and now going up to 220 as of writing this article (10:00 AM IST, 28th December).
Looking back, when the chart pattern is like this, it usually goes up, and this stock might reach its highest price ever. It made a record profit of 3403 Crores recently, and about 90% of the stock is held by strong hands like promoters, foreign institutional investors (FII), and domestic institutional investors (DII).
In my opinion, if this stock has to go back to its highest price ever, it’s about 38% higher than the current levels.
Here you go on the Chart :
ABOUT
Petronet LNG Ltd was established to develop, design, construct, own, and operate Liquefied Natural Gas (LNG) Import and regasification terminals in India. Formed through a Joint Venture in 1998, GAIL, Indian Oil, Bharat Petroleum & ONGC each hold a 12.5% stake
KEY POINTS
- Major Player in LNG Supply: The company specializes in the transportation, storage, and regasification of LNG. It operates 2 regasification terminals in Dahej (Gujarat) and Kochi (Kerala) with a combined capacity of 22.5 MMTPA, contributing to 40% of gas supplies in the country and managing approximately 75% of LNG imports in India.
- Revenue Breakup: In FY20, sales of RLNG constituted 93%, while regasification made up 6%, compared to 95% and 4%, respectively, in FY 2018-19.
- Major Customers: GAIL, IOCL, and BPCL are the primary customers, collectively contributing to approximately 93% of the company’s revenues in FY20.
- Small Scale LNG (SSLNG): Petronet LNG leads in introducing LNG consumption exclusively as a liquid in long-distance heavy-duty trucks and inter-city buses. SSLNG involves supplying natural gas in the form of LNG to small consumers through unconventional transportation methods like trucks and small vessels.
- Promoting LNG as an Automotive Fuel: Petronet is actively promoting environmentally friendly LNG as a fuel in road transportation. It has commissioned India’s first LNG dispenser stations within Dahej & Kochi LNG terminals and deployed the country’s first commercially approved LNG-powered buses. Collaborations have been initiated with IOCL, Indraprastha Gas Limited, Sabarmati Gas Limited, and State Roadways Corporations for LNG-powered buses and dispensing stations.
- New Ventures: Petronet LNG is planning the construction of an LNG regasification terminal in Bangladesh, with a detailed feasibility report submitted for a storage and gasification terminal in South Andaman. Additionally, plans are underway for a Floating storage & regasification terminal in Colombo, Sri Lanka, in collaboration with a Japanese consortium.
- Expansion Plans for Dahej Terminal: Petronet is set to expand capacities at the Dahej Terminal from the current 17.5 MMTPA to 22.5 MMTPA. The expansion will occur in two phases, with an initial 2.5 MMTPA increase in the first phase over the next three to four years from 2021, followed by a second phase of a similar expansion.
