The brokerage firms gave a mixed call for Petronet Gas, days after it posted strong Q4 results on Tuesday. It has shown a rise of 71 per cent in the consolidated net profit to Rs 63.92 crore in the fourth quarter of the financial year 2021 as against Rs 373.2 crore in the same period year ago. 

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After Q4 results were announced on Tuesday, the stock declined by over seven per cent on Wednesday to Rs 228.55 per share. However, it opened positive during today’s trade by over one per cent to Rs 231.25 per share. 

CLSA maintains a Buy rating on the stock as the stock is close to its bear case valuation and expects the volume headwinds in H1 see lower our FY22 EPS by nine per cent. It sets a target of Rs 270 per share, mentioning that it remains among the most attractive value stocks in India. 

While Credit Suisse has an Outperform rating on Petronet LNG, and cuts FY22 EPS by 6 per cent to account for lower volumes in the first half of FY22. The brokerage firm also sets a target of Rs 270 per share, further adding that phase of high capex to start, but stock attractive at 9x FY23e EPS. 

On the other hand, Citi downgrades Petronet LNG to Neutral and cuts target to Rs 260 from Rs 325 per share. It lowers FY22-23 earnings by seven-nine per cent and FY20 dividend payout lower at 58 per cent versus 70 per cent over FY19-20. 

The board of directors of the company has recommended final dividend of Rs 3.50 per share for the financial year 2020-21. 

Petronet LNG was formed as a joint venture by the Government of India to import LNG and set up LNG terminals in the country, involving India's leading oil and natural gas industry players like GAIL (India), Oil & Natural Gas Corporation (ONGC), Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation (BPCL). Each company holds a 12.50 per cent stake in Petronet as of 31 March 2021.