Capital allocation is a legitimate concern for investors. We believe that PLNG will allocate capital prudently wrt its deal with Tellurian. PLNG made it clear that volumes will be tied-up only to the extent guaranteed by its customers. Moreover, low LNG prices and impending commissioning of Kochi-Manglore pipeline will ensure high utilization of both terminals. The stock is currently trading at 13x FY21E EPS and 7.6x FY21E EV/e. Our TP is Rs 390 (17x Sep-21E EPS). We see the risk/reward as favourable. We maintain BUY on PLNG post its stellar performance in Q2. Expected ramp-up at both terminals, predictable earnings from tied-up volumes and robust gas demand driven by benign spot LNG prices keep our faith intact.