However, Nomura has maintained its “buy” rating on the stock but cut its price target to ₹340 from ₹370 earlier. The revised price target implies an upside potential of 25% from current levels.
Nomura has observed in its note, citing the management of Petronet LNG, that India-specific trains were not damaged during the attacks on QatarEnergy’s Ras Laffan Industrial Complex.
The brokerage believes that the crisis in West Asia may hurt near-term volumes for Petronet LNG.
As a result of this, Nomura has cut its financial year 2027 Earnings Before Interest, Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates for Petronet LNG by 23%, as it believes that the Ras Laffan unit may take months to come back online.
Since India-specific trains were not damaged, Nomura believes that Indian supplies might resume, once the Force Majeure that is currently in place, is lifted.
According to QatarEnergy’s CEO, there has been a long-term damage to two out of the 14 LNG trains, which could lead to 12.8 million tonnes, or 17% of the overall capacity to be offline for three to five years.
At the current price, Petronet LNG is trading at 11.7 times its estimated financial year 2027 price-to-earnings and 1.8 times financial year 2027 forward price-to-book.
33 analysts have coverage on Petronet LNG, of which 20 have a “buy” rating, seven say “hold”, while six have a “sell” recommendation on the stock.
Shares of Petronet LNG ended 7% lower on Thursday at ₹271.9, which is near its recent 52-week low of ₹263.5.
