Thoughts about Petronet LNG

Petronet LNG- a stock in the Oil & Gas sector backed by strong management. It was initiated by Govt of India in 1998 and is into LNG procurement. For investors of Petronet LNG, one must know that the four promoters ONGC, GAIL, BPCL, OICL each holds 12.5% stake in the company. Looking at the history, Petronet LNG doesnt have any history of bonus in the past but the company has declared dividends on various occasions.

• 2007- 13%
• 2008- 15%
• 2009- 18% 
• 2010- 18%
• 2011- 20%

The company's Net profit was standing at 313 Crores in 2007 vis-a-vis a net profit of Rs 619 Crores in FY11 showing a 100% return growth in profits in nearly 4 years. Lookig at the fundamentals, I am neutral on the stock as the valuations are looking quite streched. If one is holding this stock in his portfolio, he may continue to hold.

Looking at the technicals,the stock is nearing its all time high of 144 and has a huge support at 105 odd levels.  I dont expect the stock to break its strong support levels of 105.

Regards
Mayank Gupta
mayankportfoliomanager@yahoo.com




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