Petronet LNG (PETRONET)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear both hats here: Buffett’s business quality and Graham’s margin of safety. Petronet LNG at ₹282.60, market cap ₹42,390 Cr, looks financially sturdy. The moat evidence I can see is in the returns: ROE 18.30% and ROCE 25.39%, with debt/equity only 0.11. That tells me it earns good returns without leaning on lenders. Free cash flow ₹1,209 Cr supports a 3.54% dividend yield. Promoter holding is 50.00%, and the Piotroski F-Score of 6/9 and Altman Z-Score of 4.08 suggest reasonable balance-sheet health. The latest quarter had ₹11,164 Cr sales and ₹870 Cr net profit. But the growth picture is mixed. Sales growth is -52.25% while profit growth is +33.17%; 5-year revenue CAGR is only 7.54%. That looks cyclical or lumpy, not a fast compounder. The P/E of 10.07 and P/B of 1.90 are not demanding on the surface, but Graham Number is ₹268.89 and the given margin of safety is -20.27%, so the price is above that conservative yardstick. DCF intrinsic value of ₹59.45 is even more cautious; if that estimate is close, ₹282.60 is expensive. The negative EV/EBITDA of -102.37 is a red flag I cannot ignore without understanding the accounting. So I see a steady, well-capitalized LNG/PNG supplier with a FairStock Score of 70/100. It is a candidate for the watchlist, not a fat-pitch bargain. I would want a wider margin of safety before buying, and I would monitor sales stabilization, profit quality, cash flow, and the valuation gap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer