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Petronet LNG Ltd

NSE: PETRONET BSE: 532522

302.40

(-0.53%)

Fri, 27 Feb 2026, 08:44 am

Petronet LNG Analysis

dividend

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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%).
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Cons

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

future

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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.
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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.

health

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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%).
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Cons

  • High level of physical assets or inventory.

management

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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.
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Cons

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

misc

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Pros

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    Cons

    • Petronet LNG has significant price volatility in the past 3 months.

    past

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    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%).
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    Cons

      value

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      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.
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      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.

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