206.50 0.10 (0.05%)
NSE Jun 24, 2022 15:31 PM
Volume: 1.7M

Petronet LNG Ltd.    
13 May 2022
HDFC Securities
RBL Bank: Despite a healthy NIM (~5%) and a positive loan growth (+2.4% YoY), RBL Bank (RBK) missed our estimates, with PAT at INR1.9bn, due to higher credit cost (2.7%). Slippages remained elevated at 4.8% (annualised), predominantly from the MFI and cards businesses. Deposit growth (in line with guidance) was reassuring - the management has guided for a pick-up in loan growth, led by retail. Given its single-engine concentration risk on the credit card portfolio (22% of loans and 56% of fee income), we believe that retail diversification is a necessary strategy. However, we argue that the expected scale and time-to-maturity are likely to take longer and call for elevated investments that back-end the 1% RoA narrative further into FY24. We also flag uncertainty around management succession and transition as a major overhang, with implications for these portfolio strategy decisions. We hack our FY23E and FY24E earnings forecasts by 9%/11% respectively and maintain REDUCE with a revised TP of INR113, implying 0.5x Mar-24 ABVPS (earlier TP at INR160). Orient Cement: In Q4, Orient's consolidated volume/revenue/EBITDA/APAT fell 12/3/24/27% YoY, dragged by weak demand and rising energy costs. High share of AFR and domestic coal usage cushioned margin contraction to healthy level of INR 946/MT (-14/-2% YoY/QoQ). Healthy cash flow has cooled off its net debt/EBITDA to 0.4x, boosting its capability to take up next round of expansions. The recent fall in the stock price also makes the valuation attractive. Thus, we upgrade our rating on Orient to BUY from ADD earlier, with an unchanged TP of INR...
Petronet LNG Ltd. has an average target of 252.33 from 6 brokers.
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