Petronet LNG tumbles on foreign brokerage downgrade reports

Petronet LNG lost 4.66% to Rs 339.80 at 12:20 IST on BSE on reports that a foreign brokerage has downgraded its rating on the stock to sell from underperform.

Meanwhile, the S&P BSE Sensex was up 26.36 points or 0.09% at 29,004.38.

On BSE, so far 2.49 lakh shares were traded in the counter as against average daily volume of 73,570 shares in the past one quarter. The stock hit a high of Rs 357.35 and a low of Rs 338.65 so far during the day. The stock had hit a record high of Rs 366.30 yesterday, 6 September 2016. The stock had hit a 52-week low of Rs 169.35 on 28 September 2015. The stock had outperformed the market over the past one month till 6 September 2016, advancing 14.82% compared with 3.2% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 32% as against Sensex's 8.22% rise.

The large-cap company has equity capital of Rs 750 crore. Face value per share is Rs 10.

The foreign brokerage reportedly said the Petronet LNG stock is fully pricing in a big recovery. The brokerage sees low chances of any significant earnings surprise from the company.

Petronet LNG's net profit surged 54.8% to Rs 377.86 crore on 37.9% decline in net sales to Rs 5108.95 crore in Q1 June 2016 over Q1 June 2015. The result was announced on 5 September 2016, during which the stock market was closed on account of Ganesh Chaturthi. The stock had risen 0.91% to settle at Rs 356.40 yesterday, 6 September 2016.

Petronet LNG was formed as a joint venture by the Government of India to import liquified natural gas (LNG) and set up LNG terminals in the country.

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