19 October 2020
Update | Sector: Oil & Gas
Petronet LNG
BSE SENSEX
40,432
S&P CNX
11,873
CMP: INR223
TP: INR335 (+50%)
Buy
Dahej terminal – Hercules lifting the company
Our recent interaction with PLNG and GAIL highlight that there could be some
further delay in commissioning of the Kochi-Mangalore pipeline due to technical
difficulties. Thus, according to the revised guidance, the pipeline is expected to be
completed by end-CY20. This could impact capacity utilization assumptions for the
Kochi terminal in 3QFY21 (revised down from 30% to 21%, resulting in marginal
EPS cut of 3% for FY21).
The Dahej and Kochi terminals are operating at pre-COVID levels since the first
week of Jun’20. This is due to higher gas offtake from sectors like fertilizers and
power, which are the clear leaders, while city gas distribution (CGD) is a laggard.
Domestic gas production is down 10% YoY in Aug’20 and 13% YoY for YTD FY21;
with total gas consumption down 8% YoY in Aug’20 and 3% YoY for YTD FY21.
All of these have resulted in LNG imports forming ~58-59% of the total gas
consumption (much higher v/s last five year average of ~52%).
We expect imports to increase further as demand from refining and other
segments normalize in the coming months, aided by new fertilizer plants.
Further, on the MoU with Tellurian (final decision is expected in FY21), PLNG
continues to reiterate that it is non-binding in nature and the IRR benchmark for
the company stands at 16%. However, the bigger question is whether the
investment is required at all. The market has changed considerably now and
people are not keen on investments in such projects because there is no dearth of
gas right now. Maintain Buy.
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
PLNG IN
1,500
334.4 / 4.6
291 / 171
-6/-23/-19
867
Financials & Valuations (INR b)
Y/E March
2020 2021E
Sales
354.5
274.3
EBITDA
39.9
45.5
Adj. PAT
27.7
27.7
Adj. EPS (INR)
18.5
18.5
EPS Gr. (%)
28.5
0.1
BV/Sh.(INR)
73.0
78.6
Ratios
Net D:E
-0.4
-0.5
RoE (%)
26.4
24.4
RoCE (%)
25.4
21.3
Payout (%)
43.2
70.0
Valuations
P/E (x)
11.8
11.8
P/BV (x)
3.0
2.8
EV/EBITDA (x)
7.9
6.8
Div. Yield (%)
3.2
4.9
FCF Yield (%)
8.7
9.0
2022E
376.3
50.7
31.9
21.3
15.1
84.9
-0.6
26.0
23.6
70.0
10.2
2.6
5.7
5.7
11.5
Reality check on increasing LNG imports…
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-20 Mar-20 Jun-19
50.0
50.0
50.0
7.9
29.2
13.0
7.8
29.3
12.9
10.3
27.0
12.7
FII Includes depository receipts
Stock Performance (1-year)
Petronet LNG
Sensex - Rebased
370
290
210
130
Gas demand has seen the fastest revival in the entire energy basket post the
COVID-led demand destruction, with LNG imports supporting the recovery.
Taking advantage of lower spot prices, various power plants have moved
away from coal. While fertilizer plants (+16% YoY i.e. 6.7mmscmd in YTD
FY21) have clocked the highest ever monthly imports (in Jul’20),
refinery/petchem imports also grew (+11% YoY i.e. 3.3mmscmd in YTD FY21)
due to lack of domestic gas production.
Having said that, in Aug’20, total gas demand from CGDs is still down ~31%
YoY (~9.5mmscmd), with domestic gas consumption down 20% YoY
(~3.5mmscmd) and LNG consumption down 45% YoY (~6mmscmd).
Assuming that domestic gas production remains hushed and CGD demand
returns to pre-COVID levels (of ~30.5mmscmd from ~21mmscmd currently),
imports could form ~60% of total consumption v/s ~58% currently (similar to
the highest percentage imports achieved in Feb’20).
ONGC has also guided that the KG basin would see some delay in production
as many vendors have enforced force majeure.
Dahej terminal is operating at >100% capacity of 17.5MMTPA (63mmscmd)
v/s Jan-Feb’20 average of 92% capacity (58mmscmd). Kochi terminal is
operating at 20% capacity (3.6mmscmd). PLNG expects Dahej utilization to
remain healthy at 100%+ going forward in the year.
…Dahej emerging as the biggest beneficiary
Swarnendu Bhushan- Research Analyst
(Swarnendu.Bhushan@MotilalOswal.com)
Sarfraz Bhimani - Research Analyst
(Sarfraz.Bhimani@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Petronet LNG
Dahej has 16.6mmtpa of LT sourcing/utilization contracts (7.5 + 8.25 + 0.85 from
Gorgon), while the rest is driven by short-term/spot demand. Off-takers have been
blending spot gas with LT contracts to balance prices, further aiding imports. Also,
as Kochi ramps up, the idea could be to explore cheaper spot gas first. Thus, the
current Gorgon volumes at Dahej may not go to Kochi immediately.
The company believes that utilization levels at Dahej terminal could be at
current levels even 4-5 years down the line because of back-to-back tie-ups
despite competition coming in. Threat to the Dahej terminal is the least as it is
connected by four pipelines and offers competitive tariffs.
Dahej terminal’s tariff still has huge scope for escalation as it stands lower
(~INR10/mmbtu) than the next minimum gas tariff in the country.
LNG imports to reach ~30/40mmtpa in 2025/30 (currently at 24mmtpa)
JKM spot prices have risen to ~USD4.5/mmbtu in Sep’20 (although -17% YoY)
due to US LNG production disruptions, led by cyclones and hurricanes. Even so,
US LNG gas deliveries to major export terminals reached the highest level since
Apr’20 as Cove Point and Cameron LNG terminals resumed production (See
exhibit 4).
Wood Mackenzie expects LNG terminal utilization to touch last year
levels in Oct’20 (See
exhibit 5),
with Sabine Pass utilization at ~91% and no other
significant outages in Gulf Coast facilities.
The current benign spot price environment bodes well for the government’s
plan to revive gas-based power plants. According to S&P Global Platts, Spark
spread (difference between wholesale price of electricity and cost of production
using gas) turned positive in Jul’20.
Also, PNGRB has permitted all entities to set up LNG stations in any geographical
area (GA) or anywhere in the country to promote LNG as an alternative fuel for
trucks. Small Scale LNG (ssLNG) has a potential of 8-9mmtpa of LNG for trucks
over the next 8-10 years.
Furthermore, the NGT’s actions against severely/critically polluted industrial
clusters would lead to higher adoption of gas from industries.
The three concerns of PLNG – (a) competition, and (b) long-term growth are
answered above, while (c) usage of cash is listed below under capex guidance.
PLNG has guided to keep improving its dividend policy and payout (at ~70%),
until further clarity/affirmation emerges on capex plans.
The stock trades at 10.2x FY22E EPS of INR21.3 and 5.7x FY22E EV/EBITDA, with
expected EBITDA CAGR of ~13% over FY20-22E. We value PLNG on DCF basis to
arrive at a fair value of INR335. Reiterate
Buy.
Exhibit 1: LNG imports as a % of total gas consumption set to increase above 60%
LNG imports as a %
Total gas consumption (mmscmd)
Source: PPAC, MOFSL
19 October 2020
2
 Motilal Oswal Financial Services
Petronet LNG
Exhibit 2: Spark spread in India turns positive on benign spot
LNG prices…
Exhibit 3: …which hovered in the range of USD3.4-
4.5/mmbtu over the last four months
Spot prices (USD/mmbtu)
Slope (% of Brent)
Source: S&P platts, MOFSL
Source: Meti, MOFSL
Exhibit 4: Gas at major US LNG terminals reached highest
levels since Apr’20 (pre-COVID)
Exhibit 5: Total US LNG exports and forecast, which is set to
exceed 2019 numbers
Source: S&P platts, MOFSL
Source: Wood Mackenzie, NGI, MOFSL
PLNG – capex guidance and key developments
Dahej – USD350m for tanks and jetty expansion:
Two more tanks and a jetty
are being developed at Dahej (in addition to the existing six tanks and two
jetties). Completion is targeted by end of 2023-24. With the introduction of the
third jetty, Dahej should serve as a full-fledged LNG hub on the western coast.
Eastern coast LNG terminal – USD700–800m:
~100km away from Jagdishpur
Haldia pipeline.
Sri Lanka LNG terminal – USD175m (of the total 350m) in the near term:
With a
change in the political scenario in the country, talks related to the LNG project
have gained momentum. Also, the terminal would enjoy proximity to a power
plant, aiding gas off-take and supporting utilization rates.
Small-scale LNG (ssLNG) stations on highways:
USD100m (of the total
USD500m) in 2-3 years – PLNG plans to set up ~50 ssLNG stations on five
highways over the next 2-3 years (under Phase I). It has entered into MoU with
GUJGA to set up five stations on the Delhi-Mumbai highway; IGL would also set
up three stations on the highway, taking the total count to eight. Another MoU
has been signed with IOC for setting up five LNG stations in southern India.
19 October 2020
3
 Motilal Oswal Financial Services
Petronet LNG
Story in charts
Exhibit 6: Volume growth led by capacity ramp-up
Dahej
Kochi
Total throughput (mmt)
20.9 21.8
18.4 18.2
2.5
16.8 16.7
2.0
14.4
Exhibit 7: Stable return ratios
34.1
28.8
25.2
16.5
14.8
15.1
14.1
18.6 17.2
10.9
13.8 12.5
19.0
23.2 23.3 21.8
21.1 21.5
RoE
RoCE
26.4
25.4
21.3
24.4
26.0 26.6
23.6 24.7
0.6 0.5
0.9
1.0
10.8 10.4 9.8 10.4 11.5
8.7
0.3
- -
0.3
-
0.1 0.1
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 8: EBITDA/PAT to record CAGR of ~8-11%...
EBITDA (INRb)
PAT (INRb)
Exhibit 9: …over FY20-23 period
EPS
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 10:
Key assumptions
– Kochi utilization in 3QFY21 revised down from 30% to 21% owing to further delay in
commissioning of Kochi-Mangalore pipeline
Y/E March
Key assumptions
Exchange Rate (INR/USD)
Brent (USD/bbl)
Capacity (mmt)
Dahej terminal
Kochi terminal
Capacity utilization (%)
Dahej terminal
Kochi terminal
Volume sold (mmtpa)
Dahej terminal
Kochi terminal
Re-gassification charges
(INR/mmBtu)
Dahej terminal
YoY (%)
Kochi terminal
YoY (%)
FY15
61.4
85.5
15.0
10.0
5.0
69%
103%
2%
10.4
10.3
0.1
FY16
65.5
47.5
15.0
10.0
5.0
77%
112%
6%
11.5
11.2
0.3
FY17
67.1
49.0
18.3
13.3
5.0
79%
106%
6%
14.4
14.1
0.3
FY18
64.4
57.6
20.0
15.0
5.0
84%
108%
12%
16.8
16.1
0.6
FY19
70.0
70.1
20.0
15.0
5.0
84%
108%
10%
16.7
16.2
0.5
FY20
70.9
61.2
21.9
16.9
5.0
84%
104%
17%
18.4
17.5
0.9
FY21E
74.9
40.4
22.5
17.5
5.0
81%
98%
20%
18.2
17.2
1.0
FY22E
75.8
50.0
22.5
17.5
5.0
93%
108%
40%
20.9
18.9
2.0
FY23E
75.8
50.0
22.5
17.5
5.0
97%
110%
50%
21.8
19.3
2.5
39.1
5.0%
65.1
5.0%
41.0
5.0%
68.4
5.0%
43.1
5.0%
71.8
5.0%
45.2
5.0%
75.4
5.0%
47.5
5.0%
75.4
0.0%
49.9
5.0%
79.1
5.0%
52.4
5.0%
83.1
5.0%
52.4
0.0%
79.1
0.0%
52.4
0.0%
79.1
0.0%
Source: Company, MOFSL
19 October 2020
4
 Motilal Oswal Financial Services
Petronet LNG
Financials and Valuations
Standalone - Income Statement
Y/E March
Total Income from Operations
Change (%)
Raw Materials
Employees Cost
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
Standalone - Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
FY16
2,71,334
-31.3
2,50,757
711
4,005
2,55,472
94.2
15,863
5.8
3,216
12,647
2,388
1,733
11,992
0
11,992
2,860
23.8
9,133
9,133
3.5
3.4
FY17
2,46,160
-9.3
2,14,169
739
5,330
2,20,238
89.5
25,923
10.5
3,691
22,232
2,097
3,466
23,602
0
23,602
6,545
27.7
17,057
17,057
86.8
6.9
FY18
3,05,986
24.3
2,66,902
912
5,049
2,72,863
89.2
33,124
10.8
4,117
29,007
1,630
3,174
30,551
0
30,551
9,773
32.0
20,779
20,779
21.8
6.8
FY19
3,83,954
25.5
3,44,170
1,259
5,592
3,51,020
91.4
32,935
8.6
4,112
28,822
989
4,503
32,336
0
32,336
10,782
33.3
21,554
21,554
3.7
5.6
FY20
3,54,520
-7.7
3,04,959
1,258
8,408
3,14,625
88.7
39,895
11.3
7,761
32,134
4,032
3,726
31,827
-721
31,107
4,131
13.3
26,976
27,697
28.5
7.8
FY21E
2,74,327
-22.6
2,22,076
1,295
5,505
2,28,877
83.4
45,450
16.6
8,191
37,259
3,982
3,791
37,068
0
37,068
9,341
25.2
27,727
27,727
0.1
10.1
FY22E
3,76,262
37.2
3,13,953
1,334
10,239
3,25,527
86.5
50,735
13.5
8,476
42,259
3,676
4,078
42,662
0
42,662
10,751
25.2
31,911
31,911
15.1
8.5
(INR M)
FY23E
4,05,694
7.8
3,39,037
1,374
10,656
3,51,067
86.5
54,627
13.5
8,858
45,770
3,137
4,537
47,170
0
47,170
11,887
25.2
35,283
35,283
10.6
8.7
(INR M)
FY23E
15,000
1,23,006
1,38,006
17,425
8,883
1,64,314
1,11,807
48,419
63,388
3,100
38,406
98,949
5,503
18,799
67,766
6,882
39,529
13,344
25,808
377
59,420
1,64,314
FY16
7,500
58,640
66,140
26,146
5,886
98,171
71,321
3,216
68,105
15,505
900
39,751
2,461
9,885
21,829
5,576
26,090
8,695
17,241
155
13,661
98,171
FY17
7,500
73,439
80,939
22,180
7,302
1,10,421
91,134
6,903
84,230
486
29,351
24,224
5,405
12,108
3,273
3,438
27,870
9,952
17,758
160
-3,646
1,10,421
FY18
15,000
82,205
97,205
7,334
10,482
1,15,021
91,316
11,020
80,296
2,203
41,223
32,815
4,911
16,505
8,625
2,774
41,517
15,699
25,619
199
-8,702
1,15,021
FY19
15,000
85,661
1,00,661
1,012
13,360
1,15,033
91,783
15,132
76,651
3,482
9,893
60,823
5,694
14,335
29,603
11,190
35,815
12,952
22,585
278
25,007
1,15,033
FY20
15,000
94,530
1,09,530
34,034
8,883
1,52,447
99,860
22,894
76,967
47
38,406
71,570
4,809
16,427
44,320
6,014
34,543
11,661
22,552
330
37,028
1,52,447
FY21E
15,000
1,02,848
1,17,848
27,227
8,883
1,53,958
1,02,398
31,085
71,313
2,509
38,406
68,459
3,721
12,711
47,373
4,654
26,729
9,023
17,451
255
41,730
1,53,958
FY22E
15,000
1,12,421
1,27,421
21,782
8,883
1,58,086
1,06,905
39,561
67,344
3,002
38,406
85,996
5,104
17,435
57,074
6,383
36,661
12,376
23,935
350
49,334
1,58,086
19 October 2020
5
 Motilal Oswal Financial Services
Petronet LNG
Financials and Valuations
Ratios
Y/E March
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
Standalone - Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Deferred tax
Direct Taxes Paid
(Inc)/Dec in Wkg. Capital
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free Cash Flow
(Pur)/Sale of Investments
CF from Inv. Activity
Inc / (Dec) in Debt
Dividends Paid (incl.tax)
CF from Fin. Activity
Inc / ( Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOFSL Estimates
FY16
6.1
8.2
44.1
1.3
23.9
35.8
26.5
4.9
1.2
20.9
0.6
12.3
14.8
12.5
13.9
3.8
2.8
3
13
12
1.5
5.3
0.1
FY17
11.4
13.8
54.0
2.5
25.7
19.2
15.8
4.0
1.4
13.3
1.1
10.7
23.2
19.0
23.4
2.7
2.2
8
18
15
0.9
10.6
-0.1
FY18
13.9
16.6
64.8
4.5
38.0
15.7
13.1
3.4
1.1
9.8
2.1
24.4
23.3
21.1
28.1
3.4
2.7
6
20
19
0.8
17.8
-0.4
FY19
14.4
17.1
67.1
9.0
68.0
15.2
12.7
3.2
0.8
9.1
4.1
9.4
21.8
21.5
28.5
4.2
3.3
5
14
12
1.7
29.1
-0.4
FY20
18.5
23.6
73.0
7.0
43.2
11.8
9.2
3.0
0.9
7.9
3.2
18.9
26.4
25.4
39.3
3.6
2.3
5
17
12
2.1
8.0
-0.4
FY21E
18.5
23.9
78.6
10.7
70.0
11.8
9.1
2.8
1.1
6.8
4.9
19.5
24.4
21.3
41.2
2.7
1.8
5
17
12
2.6
9.4
-0.5
FY22E
21.3
26.9
84.9
12.4
70.0
10.2
8.1
2.6
0.8
5.7
5.7
25.0
26.0
23.6
50.5
3.5
2.4
5
17
12
2.3
11.5
-0.6
FY23E
23.5
29.4
92.0
13.7
70.0
9.3
7.4
2.4
0.7
5.1
6.3
26.5
26.6
24.7
59.7
3.6
2.5
5
17
12
2.5
14.6
-0.6
(INR M)
FY23E
47,170
8,858
0
-11,887
605
44,746
-5,000
39,746
0
-5,000
-4,356
-24,698
-29,055
10,692
57,074
67,766
FY16
11,992
3,216
-1,384
-2,860
17,450
28,414
-9,931
18,483
0
-9,931
-396
-2,180
-275
18,208
3,621
21,829
FY17
23,602
3,691
1,416
-6,545
-1,248
20,915
-4,796
16,119
-28,451
-33,248
-3,966
-4,388
-6,223
-18,556
21,829
3,273
FY18
30,551
4,117
3,180
-9,773
10,407
38,482
-1,899
36,583
-11,872
-13,772
-14,846
-7,898
-19,359
5,352
3,273
8,625
FY19
32,336
4,112
2,879
-10,782
-12,731
15,814
-1,746
14,068
31,331
29,584
-6,322
-14,648
-24,420
20,978
8,625
29,603
FY20
31,107
7,761
-4,477
-4,131
2,697
32,957
-4,642
28,315
-28,513
-33,155
33,022
-11,648
14,915
14,717
29,603
44,320
FY21E
37,068
8,191
0
-9,341
-1,650
34,269
-5,000
29,269
0
-5,000
-6,807
-19,409
-26,216
3,053
44,320
47,373
FY22E
42,662
8,476
0
-10,751
2,097
42,484
-5,000
37,484
0
-5,000
-5,445
-22,338
-27,783
9,701
47,373
57,074
19 October 2020
6
 Motilal Oswal Financial Services
Petronet LNG
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
products. MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are
available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the
website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL
in respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”,
of which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
19 October 2020
7
 Motilal Oswal Financial Services
Petronet LNG
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in
nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for
informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing
in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this
document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or
entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,
regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in
all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
19 October 2020
8