Petronet Set For Recovery? SEBI Analyst Sees 10% Upside Over Next Two Months

Petronet LNG stock has been stuck in a range over the last month, but analysts believe that it is now showing encouraging signs, driven by bullish technical patterns and improving fundamentals, making it an attractive pick for investors.

SEBI-registered analyst Gaurav Narendra Puri noted that on the technical side, the Relative Strength Index (RSI) stands above 50, which indicates bullish momentum and strong buying interest. The stock is also taking reliable 20-day Exponential Moving Average (EMA) support at ₹277, while price action support on the charts further validates its strength. 

These technical signals suggest a stable trend with potential upside if the momentum continues, he added.

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From a fundamental perspective, the company has delivered consistent growth over the past three years. Annual net profit has been trending upward, supported by a steady increase in EBITDA, which reflects operational efficiency and financial discipline. 

Valuation-wise, the stock appears undervalued. With a price-to-intrinsic value ratio of 0.386, it trades at a significant discount to its intrinsic worth. Additionally, the P/E ratio of 11.26 and the EV/EBITDA of 6.87 strengthen the case for undervaluation when compared to sector averages. 

Puri also highlighted that there has been a tremendous increase in book value over the last three years, signaling wealth creation for shareholders. 

Overall, he believes that Petronet presents a balanced investment case with bullish technicals, improving financials, and attractive valuations. 

Trading Strategy
Puri recommended buying the stock with a 2-month timeframe and a stop loss at ₹267. He set the target prices of ₹292, ₹300, and ₹310 for Petronet LNG.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment has been ‘neutral’ for a few weeks now. It was ‘bearish’ a month ago. 

Petronet LNG shares have declined nearly 20% year-to-date (YTD).

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