Petronet LNG Ltd

NSE: PETRONET BSE: 532522

₹268.45

(1.44%)

Sat, 30 May 2026, 08:19 am

Market Cap396.98B

PE Ratio10.29

Dividend3.77

Utilities

Gas Distributors

24.5K

Petronet LNG Analysis

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are well covered by earnings (4.1x coverage).
Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
Petronet LNG's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
Petronet LNG's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Pros

Cash flow for Petronet LNG is expected to increase by more than 50% in 2 years time.
Petronet LNG's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Petronet LNG's earnings are expected to exceed the low risk growth rate next year.
Petronet LNG is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Performance (ROE) is expected to be above the current IN Oil and Gas industry average.
An improvement in Petronet LNG's performance (ROE) is expected over the next 3 years.

Cons

Petronet LNG's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
Petronet LNG's earnings growth is positive but not above the India market average.
Petronet LNG's net income is expected to increase but not above the 50% threshold in 2 years time.
Petronet LNG's revenue is expected to increase but not above the 50% threshold in 2 years time.
Petronet LNG's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Petronet LNG's revenue growth is positive but not above the India market average.

Pros

Petronet LNG is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Petronet LNG is profitable, therefore cash runway is not a concern.
Petronet LNG is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (159.4%, greater than 20% of total debt).
Debt is covered by short term assets, assets are 5.8x debt.
Petronet LNG's cash and other short term assets cover its long term commitments.
The level of debt compared to net worth has been reduced over the past 5 years (49.3% vs 12.8% today).
Interest payments on debt are well covered by earnings (EBIT is 12.6x coverage).
Petronet LNG's level of debt (12.8%) compared to net worth is satisfactory (less than 40%).

Cons

Pros

Prabhat's remuneration is lower than average for companies of similar size in India.
Prabhat's compensation has been consistent with company performance over the past year, both up more than 20%.
The tenure for the Petronet LNG management team is about average.

Cons

The average tenure for the Petronet LNG board of directors is less than 3 years, this suggests a new board.

Pros

Cons

Pros

Petronet LNG's 1-year earnings growth exceeds its 5-year average (27% vs 24.4%)
Petronet LNG has delivered over 20% year on year earnings growth in the past 5 years.
Petronet LNG used its assets more efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
Petronet LNG has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Petronet LNG has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
Petronet LNG's earnings growth has exceeded the IN Oil and Gas industry average in the past year (27% vs -22%).

Cons

Pros

532522 outperformed the Oil and Gas industry which returned -4% over the past year.
532522 outperformed the Market in India which returned -14.5% over the past year.
BSE:532522 is up 14.3% outperforming the Oil and Gas industry which returned 10.5% over the past month.
BSE:532522 is up 14.3% outperforming the market in India which returned 8% over the past month.

Cons

Petronet LNG's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
Petronet LNG's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
Petronet LNG is overvalued based on assets compared to the IN Oil and Gas industry average.
Petronet LNG is poor value based on expected growth next year.
Petronet LNG is overvalued based on earnings compared to the IN Oil and Gas industry average.
Petronet LNG is overvalued based on earnings compared to the India market.