I started investing into Petronet LNG from before Q4 FY11 results and I can tell you that I have not come across a much safer bet as far as stock investment is concerned. I have bought Petronet LNG all the way from 130 to 170 and I could not have been more happier. What I feel is Petronet LNG is an oil and gas story and a very positive one and thus it is cheered a lot by investors. With the kind of expansions lined up for the company and the kind of profits the company is generating since last year is just a blessing for investors. What added onto the performance of Petronet LNG was when the demand for LNG went up as Reliance Industries decelerated the gas production from KG D6. This quarter Petronet LNG had seen a 106% volume in re gasification, which just tells you the kind of demand there is for LNG at this point of time. Another thing that makes Petronet so attractive that it is only one of a kind in the whole country. There is no other company that is bringing liquid gas and regasifying it and selling.

Petronet LNG is rapidly expanding, they have lined up an expansion in Kochi and their existing capacity at Dahej has also been planned to be expanded in near future. This year profits are going up just on the base of current capacities, next year profits will go up due to Kochi expansion and next to next year for Dahej expansion. They also have plans to make a gas based power plant, so in short this company is quite ready to grow their balance sheet every year. The outlook is good alteast for the next two years and we can expect this stock to climb good levels. The biggest benefit an investor has in this scrip is the limited downside. This stock nearly never crashes and finds a bottom very soon after any kind of rally. For example, take a look at the market levels today, it has crashed from 5700 to 5000 now, but petronet is firmly holding levels of 170. As this stock falls below 170, buyers jump back into the scrip and take it back to 170+ on the same day. Even as we speak, it is up a rupee on a falling market.

One can invest into Petronet LNG at current levels with a long term horizon and Im sure you will make a lot of money.

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