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March 21, 2012

Watch Son ,Composer and Rhythm Guitarist,Varun Parikh performing with his Band Xylophobia Live in Pune this evening through Live Internet Stream

Watch Son , Composer and Rhythm Guitarist,Varun Parikh performing with his Band, Xylophobia Live in Pune this evening at 8 pm through Live Internet Stream

The Link is http://www.ustream.tv/channel/events-i2it

They are the Headbanging Band and will perform for 90 minutes at Dhruva 2012,the Annual Fest of  I2IT…International Institute of Information Technolgy in Pune

Cheers !   

PETRONET LNG @ Rs 162…this is the Company I was referrring to, Anand,Rohit and Kishor

Hi Anand,Rohit and Kishor…..I was’nt referring to Essar Oil in the earlier Blog….the Company that I have in mind is PETRONET LNG @ Rs 162…It’s IPO was in early 2004 at Rs 15 and got listed at Rs 16.50…at the time the then MD and CEO ,Mr Mathur and Director Finance,Mr Dasgupta has asserted strongly that after 5 years the Company would take on a different momentum after Terminals and Capacities went on stream fully….they were fully right !…the Company has been promoted by India’s leading Oil and Gas PSUs…GAIL,ONGC,Indian Oil and BPCL …It imports LNG largely from Ras Gas ,Qatar by Specialised LNG Shipping Carriers  and regasifies it at it’s Dahej and Kochi Terminals for distribution largely through a strong Pipeline Network…It’s a Capital Intensive Business with a fairly long Gestation Period…and requires strong Domain Technical and Operating Expertise and a robust Distribution Infrastructure…explains why it is a PSU promoted by other PSUs  

PETRONET LNG

 

IPO Rs 13-Rs 15 ~ Price Fixed Rs 15 ~March  2004

 Size Rs 26 crs ~ Oversubscribed 4.2 Times

 

SHARE  PRICE TREND ON THE BSE 2004-2012

 

Year

Open
Price

High
Price

Low
Price

Close
Price

 
 

2004

16.50

33.25

14.45

31.35

 

2005

31.80

71.90

31.60

65.95

 

2006

66.40

68.50

35.50

48.20

 

2007

48.50

117.50

41.15

107.30

 

2008

108.90

121.90

29.65

39.60

 

2009

40.00

82.40

31.60

71.65

 

2010

72.00

131.30

69.00

124.95

 

2011

126.00

185.85

105.10

155.80

 

2012

157.75

179.75

150.50

161.70

 

 Last Year in 2011 while Sensex retreated 25%,PETRONET LNG was up smartly from end 2010 levels of Rs 125 to close 2011 at levels of Rs 150 + after recording it’s alltime high of Rs 186 in the year

The huge shortage of gas in India has prompted the company to fast track the Dahej Expansion to 15 Million Tonnes by not waiting for the Storage Tanks to come up,but focuisng to get the marine and regasification facilities up first…Storage Tanks take upto three and a half years to four years to be up while the regasification unit can be set up in Two years as too the Jetty….These new expansion facilities should be ready mid 2013….With 15 Million Tonnes Capacity the Dahej Terminal will be the second largest in the world …the largest with a capacity of 17 million tonnes is in the UK

Domestic Gas Shortage has two clear reasons

~ Falling Production from Reliance’s KG-D6 field

~Surge in Demand from Power and Fertiliser Sectors

By 2015,India’s LNG regasification capacity would be 30 Million Tonnes,up from just 13 Million currently….PETRONET LNG would have 15 Million capacity at Dahej and 5 Million capacity at Kochi…. Around 75% of the demand is from The Power Sector,followed by Fertilser and then City Gas and Others 

The Financials are also pretty robust….The Dividend record extends to five years now with it being raised to 20% in FY 2011,when the Sales crossed Rs 13000 crs and the PAT was the highest ever @ Rs 620 crs giving an EPS of Rs 8+on an Equity of Rs 750 crs (FV Rs 10)….Networth was Rs 2700 crs at March 31,2011 and should cross Rs 3200 crs in FY 12  read more

“What Indian stocks should we be buying or selling ?”

“What stocks should we be buying or selling ?” 

Have been queried this more often in the past month or two, especially after 2012 opened with a bang and Sensex and Nifty began their 2012 Journey as if to conquer new peaks soon as record FII Inflows packed a punch ! 

Overnight,as in any Bull run,the equity and derivative advisory websites and emailers began to come out of the woodwork like worms….”Make Money in a Day”….”We are always right”…”We earned our clients this and that in this and that strategy in stocks and indices”….the advice basis and approach could be fundamental or technical…such claims and boasts from such sites bombard your email box daily from all over India…Noida,Gurgaon, Bangalore,Hyderabad,Ahmedabad,Chandigarh,Kolkata,Chennai…and ofcourse Mumbai …you have to deal with these in addition to the plethora of Experts humming away contrasting and contradictory opinions on Stock Channels….Try Ignoring them….you’ll become wiser….Equity is Risky but never Boring ! 

What comes to my mind is the classic song from ‘Mera Naam Joker’…… “Aye Bhai Zara Dekh kay Chalo…aage bhi nahi,peeche bhi,uppar bhi nahin neeche bhi…Aye Bhai ! ” …and quite comically too another classic song from the same movie retorts back to me ” Jeena Yaha ,Marna Yaha,Uske Siva Jaana Kaha !…”  ….that’s the addiction of Stock Markets !

A Rational and Sensible Approach is that if you missed the early Jan and Feb run,don’t get seduced to get in now on a top down approach and play the Sensitive Indices,whether Sensex or Nifty ,or even Sector Indices like the Bank Nifty or any other….be very selective….it increasingly is a bottoms up market and Indications are that the Sensex will remain rangebound between 15000 and 19000 this year

Yeah ! am sure you want to tap into my Selections !…Oil & Gas Sector Scrips have been hit with Subsidy burdens and additional cess pressure (Rs 4500/t from Rs 2500/t earlier) from this Budget 2012….but there is one Company that is expanding vigorously to take advantage of rising prices….I had interacted strongly with top management a few years ago….it became a good multibagger over the years….it now is positioning itself to become the world’s second largest capacity at a single place…need to interact with them again      read more

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