Brokerage firm JP Morgan Petronet LNG Limited Has increased the rating and target price for the stock. The rating has been upgraded to ‘Overweight’. The price target is now ₹335 per share. The revised target is about 18% more than the previous closing price of the share. According to the brokerage, Petronet LNG’s earnings may pick up due to better volumes after the 50 lakh tonne per annum expansion started in March at Dahej.
JP Morgan also cited 5% tariff increase and low impairment costs as key positive factors. However, the brokerage cited renegotiation of dowry tariff and risks arising from large PDH capex as key valuation concerns. It has also been said that these issues are likely to remain unresolved for some time. Meanwhile, JPMorgan believes rising earnings will support the stock.
Earlier, Citi had recently warned of regulatory risks for Petronet LNG in a note. It was said that due to the changing regulatory and competitive environment, the bargaining power may shift in favor of the company’s offtakers. Offtakers means those who buy goods/services from the company.
Petronet LNG shares saw a rise of up to 4 percent in a day on January 9 and the price reached a high of Rs 295.80 on BSE. The market cap of the company is more than Rs 43500 crore. The face value of the share is Rs 10. Promoters hold 50 percent stake in the company. The stock has a 52-week adjusted high of Rs 335.75 and adjusted low of Rs 263.70 on BSE. Currently 33 analysts track Petronet LNG. Of these, 15 have given a ‘Buy’ rating to the stock, while 9 have recommended ‘Hold’ and 9 have recommended ‘Sell’.
Financial health of the company
Petronet LNG’s revenue on standalone basis in the July-September 2025 quarter stood at Rs 11009.13 crore. Meanwhile, net profit was recorded at Rs 805.75 crore. In the financial year 2025, the company’s revenue was Rs 50979.56 crore and net profit was Rs 3926.37 crore. Petronet LNG is a joint venture between the Government of India and the country’s major Public Sector Undertakings (PSUs).
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