Petronet LNG Ltd.
NSE: PETRONETNIFTY500
Analyst consensus:Constructive· 31 analysts
₹287.85+2.1%1Y
Last updated 03:00:44 IST· Public market feed (~15 min delay during market hours)
Petronet LNG Ltd.: A 30-second snapshot
PETRONET LNG (₹274.4) is Indias dominant LNG regasification operator, trading at a trailing PE of 10.52 and forward PE of 9.82, with an 18.56% ROE and 3.63% dividend yield. The stock is below its 50-DMA and 200-DMA, off 6.89% over the past year, and carries a debt-to-equity of 10.51 — unusually high for its sector — alongside a 5-year revenue decline of 23.3% offset by 25.3% earnings growth.
P/E
10.5
Forward P/E
9.8
ROE
+18.6%
Debt / Equity
10.51
Profit Margin
+9.0%
Div. Yield
+3.6%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
61/100
Recent context
- ·No news articles were retrieved in this pipeline run, leaving recent company-specific catalysts — regulatory developments, LNG contract renewals, or capacity-expansion announcements — unassessed.
- ·Mean analyst rating of 2.29 across 31 analysts (1–5 scale, lower = more constructive) reflects a spread of views among sell-side coverage at the time of data collection.
- ·The forward PE of 9.82 versus trailing PE of 10.52 implies consensus earnings estimates for the next 12 months are modestly ahead of trailing figures, though with a falling revenue trend the source of that growth warrants examination.
Strengths
- +ROE of 18.56% exceeded 15% in 4 of the tracked years, and the debt trend is classified as falling, suggesting improving balance-sheet trajectory despite the current elevated D/E of 10.51.
- +Earnings grew 25.3% over 5 years even as revenue contracted 23.3%, pointing to sustained margin expansion and cost efficiency in LNG regasification operations.
- +Dividend yield of 3.63% reflects consistent cash returns; FCF was positive in 4 of available tracked years, underpinning payout capacity.
- +Forward PE of 9.82 is below trailing PE of 10.52, implying earnings-per-share is expected to grow; PE ranks 4th of 6 Energy peers, with BPCL (5.03) and ONGC (9.76) trading cheaper on this metric.
Weaknesses
- −D/E of 10.51 is the primary structural concern — for a non-bank infrastructure operator this level of leverage is materially above sector norms and amplifies sensitivity to interest-rate movements or throughput disruptions.
- −Revenue has declined 23.3% over 5 years, reflecting compressed LNG spot prices and possible throughput variability; topline contraction sustained over this duration represents a fundamental headwind.
- −Price is below both the 50-DMA (₹276.54) and 200-DMA (₹277.61) with a 15.93% drawdown from the 52-week high, and the stock is down 7.25% over the past 3 months — a technically subdued posture.
- −Quality score of 60 and consistency score of 56 are mid-range, placing the stock in the middle tier of the Energy peer group rather than among the higher-quality names like Coal India (quality score 77).
Open questions
- ?Is the 10.51 D/E ratio concentrated in project-finance debt tied to specific LNG terminals, and how does the amortisation schedule compare to contracted throughput cash flows?
- ?The 23.3% revenue decline over 5 years alongside 25.3% earnings growth implies significant margin expansion — does this reflect structural operational leverage, one-time cost reductions, or LNG price dynamics likely to reverse?
- ?Given that price has remained below both the 50-DMA and 200-DMA, what specific catalysts — capacity additions, new long-term supply contracts, or demand growth from city gas distribution — have historically moved the stock decisively?
- ?How dependent is PETRONETs earnings base on a small number of long-term LNG supply agreements, and what is the re-contracting timeline and price-reset risk on those agreements?
Peer comparison: Energy
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| PETRONET | Petronet LNG Ltd.You're viewing | 10.5 | +18.6% | 60 |
| Industry avg | across 5 peers | 11.8 | +18.6% | 53 |
| COALINDIA | Coal India Ltd. | 9.2 | +28.1% | 77 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 9.8 | — | 54 |
| BPCL | Bharat Petroleum Corporation Ltd. | 5.0 | — | 53 |
| RELIANCE | Reliance Industries Ltd. | 23.1 | +9.1% | 29 |
| DUMMYVEDL3 | Dummy Vedanta Ltd. 3 | — | — | — |
Technical state
Current price
₹274.40
SMA 50
₹276.54
SMA 200
₹277.61
RSI (14)
48.0 (neutral)
From 52w high
-15.9%
1Y return
-6.9%
3M return
-7.3%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
₹271.75
₹270.85
₹269.90
Algorithmic resistance levels
₹278.39
₹286.80
₹299.80
Risk flags
- highDebt-to-equity ratio of 10.51 is substantially elevated for a non-financial infrastructure company, well above typical Energy sector medians; warrants monitoring against free cash flow coverage.
- medium5-year revenue declined 23.3%, reflecting LNG throughput and pricing dynamics; earnings growth of 25.3% over the same period highlights a margin-expansion story dependent on continued cost discipline.
- mediumPrice of ₹274.4 is below both the 50-DMA (₹276.54) and 200-DMA (₹277.61), down 6.89% over 12 months and 7.25% over 3 months, with a 15.93% drawdown from 52-week high.
- lowQuality score of 60 ranks 2nd of 6 Energy peers but peer dataset has limited coverage (priceChange1Y missing for all peers, one dummy entry), making relative ranking partially indicative.
- lowZero news articles retrieved; sentiment assessment not possible for this run.
Cross-section contradictions
- Earnings grew 25.3% over 5 years while revenue fell 23.3% — margin expansion has significantly outpaced topline; sustainability of this divergence warrants scrutiny.
- ROE of 18.56% sustained above 15% in 4 of recent years (fundamentals constructive) yet the stock is below both moving averages and down 6.89% over 12 months on no identifiable news catalyst.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days