Fall of Petronet LNG shares continue; Jefferies, Citi, JP Morgan reduce target prices
Petronet LNGs shares nosedived on Monday, sliding 8.5 per cent, after the companys board gave the go-ahead to set up a petrochemical plant and propane and ethane handling facilities in Dahej, Gujarat. The shares were down over 1 per cent on Tuesday at the time of writing the report.
Petronet LNG Share Price: The fall of Petronet LNG shares continued on BSE on Tuesday (October 31, 2023) a day after the company defended its decision that it would diversify into petrochemicals. The stock was trading down 1.09 per cent, or Rs 2.20, at Rs 199.50, at 10:52 am on Tuesday.
Petronet LNG's shares nosedived on Monday, sliding 8.5 per cent, after the company's board gave the go-ahead to set up a petrochemical plant and propane and ethane handling facilities in Dahej, Gujarat.
The company's CEO AK Singh gave investors assurance that the Rs 21,000 crore project would be profitable and sustainably improve the firm's finances.
Despite the assurance from the CEO, analysts say, the investor community was not happy with the clarification and continued selling the scrip.
What brokerages say on Petronet LNG
After the fall of the shares, leading brokerages such as Jefferies, Citi and JP Morgan have reduced the target price.
Jefferies has downgraded the stock to 'underperform' from 'buy', reducing the target to Rs 180 from Rs 300.
On the other hand, Citi has maintained its rating of 'sell', cutting the target to Rs 185 from Rs 215.
While JP Morgan has maintained an 'overweight' rating, it has also reduced the share price target to Rs 275 from Rs 320.
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