Low Priced Scrip: Petronet LNG – Grab for Long Term
The volatility in stock market isn’t providing any time to breath, making it essential for you to include defensive stocks in your portfolio. Petronet LNG (PLNG) is such a stock that could be added to portfolio. This low-price scrip has a CMP of Rs 52.40. Since its IPO, Pteronet LNG has grown at a three-year CAGR or compounded annual growth rate of around 50 per cent in the topline.
Its bottomline has grown to Rs 474.65 crore in FY08. This contrasts sharply with the loss-making figure of Rs 28.45 crore it recorded in FY05. Petronet LNG has taken several growth measures, which will further improve its standing in the market.
Scrip Stats:
In FY08, Petronet LNG’s topline increased 19 per cent to Rs 6,555.31 crore (Rs 5,508.95 crore), while profits grew 51 per cent to Rs 474.65 crore (Rs 313.25 crore). Based on these figures, it generates a PE of 8.25x and a market cap-to-sales ratio of just 0.60x. This makes it a good issue to grab for the long term.
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