We hereby present you our investment idea for Equity Investment i.e “Pick of the Week”. A thorough analysis of company, industry and economy goes behind our stock ideas for you. With the “Pick of the Week”, you may earn superior returns in stock market over a time horizon of 6 – 9 months.

INVESTING RATIONALE

• International expansion – potential volume booster: (a) For Bangladesh LNG project, PLNG has already submitted proposals and waiting for assurance from the Bangladesh government for minimum revenue. It expects to receive the approvals shortly and (b) PLNG is still looking for a stake in Sri Lanka’s first LNG project with two Japanese companies (Mitsubishi and Sojitz Corp.) and one local company.

• Qatar integrated project – potential backward integration: PLNG is looking only for a minority stake with OVL (subsidiary of ONGC) to get strategic advantage and expects contribution from FY24/25. It is willing to take stake in liquefaction projects or integrated projects only but does not want to get into pure E&P projects.

• Competition – nil risk: PLNG does not see any impact to its volumes from the upcoming Mundhra and Dhamra terminals, as most of its capacity is already tied up (a total of 15.75 mta capacity at Dahej terminal is booked for both long-term and regasification). RLNG demand remains robust with PLNG not being able to meet the entire demand from power and fertilizer sectors.

• We maintain a BUY with a target of Rs.237.