Our TP is Rs. 329/sh, based on 17x Dec-20 EPS. We met Petronet LNG (PLNG) recently. Capital allocation and competition from new LNG terminals are the legitimate concerns. However, we believe that 100% take or pay contracts (running till 2028), contractual 5% escalation in regas tariff and sensible capital allocation is likely to protect shareholder value. Valuations are reasonable at 12.7x FY20E and 10.7x FY21E EPS, in view of PLNGs de-risked business profile and earnings visibility.