PETRONET - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.1

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📊 Fundamental Analysis Report

• Stock Code: PETRONET
• Market Cap: ₹42,105 Cr
• Current Price: ₹281
• 52W High/Low: ₹350 / ₹266
• EPS: ₹24.2
• Stock P/E: 11.6 vs Industry P/E: 19.9 ✅
• PEG Ratio: 2.25 ❗ (Overvalued vs Growth)
• Book Value: ₹129 | P/B Ratio: ~2.18 ✅
• ROE: 21.4% | ROCE: 26.2% 🔥
• Debt to Equity: 0.14 🟢 (Low Leverage)
• Dividend Yield: 3.56% 💰
• Quarterly PAT: ₹851 Cr (↓25.5%)
• RSI: 52.7 | MACD: 0.78 📈

✅ Positive

• Strong return metrics (ROE & ROCE) reflect efficient capital deployment.
• Low P/E and reasonable P/B ratio suggest undervaluation relative to peers.
• Healthy dividend yield of 3.56% supports income-focused investors.
• Low debt-to-equity ratio enhances financial stability and flexibility.

⚠️ Limitation

• Quarterly PAT declined by 25.5%, indicating margin pressure or volume drop.
• PEG ratio above 2 suggests valuation may be stretched relative to growth.
• FII holding declined by 1.01%, signaling cautious foreign sentiment.
• Trading volume below weekly average, indicating reduced investor activity.

📉 Company Negative News

• Sequential drop in PAT from ₹1,070 Cr to ₹851 Cr.
• FII outflows may impact short-term sentiment and liquidity.

📈 Company Positive News

• Strong dividend payout and consistent profitability support long-term investor confidence.
• Positive DII sentiment (+0.79%) reflects domestic institutional support.
• Strategic importance in India's LNG infrastructure and energy security.

🏦 Industry

• PETRONET operates in the energy and LNG infrastructure sector.
• Industry P/E of 19.9 suggests room for valuation expansion.
• Sector benefits from rising energy demand and transition to cleaner fuels.

🧭 Conclusion

• Entry Zone: ₹270–₹280 (near support and RSI neutral)
• Long-Term View: Strong fundamentals and strategic positioning make PETRONET a solid long-term hold, especially for dividend-focused portfolios.