Another fantastic quarter for Petronet LNG which reported a massive 131.5% jump in net profits to 257 crore as against 111 crores and revenues jumped 83% to 4,623 crores as against 2,526 crores. Analysts were expecting around 196 crores or something and thus the results came in much ahead of estimates. Petronet LNG has been in a habit of posting strong results and has been doing so for several quarters in a row. Thus if you look at this stock, it is trading at 52 week high and with markets going down, it hardly ever crashes. Petronet LNG is a stock that slowly keeps going up and hardly ever comes down. To be honest, I have never seen this stock crashing on the downside marginally, all I see it moving a rupee or two up every couple of days.

Petronet’s valuations remain high due to consistent strong results being put up by the company and it is expected to be so as a consistent oil and gas story is always valued, good companies tend to remain high valued as nobody wants to let go of such a growth story. The stock has already seen a decent upside post results and has hit 160 levels already. In terms of valuations Petronet was expected to post an EPS of 10 for full year FY12 but in just Q1 FY12 the current EPS has run up to 10, so I am expecting an EPS of atleast 12 for full year FY12. Thus my targets I had set previously will see an upgradation.

I had given a BUY recommendation on the stock Petronet LNG on 26th April when it was trading around 130 levels, but at that time I had set the targets of 180. But now after the strong set of results, Im expecting a target of no less than 210 from this stock in the long term perspective.

Petronet LNG has a target price of 210.

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