State-run liquefied natural gas importer Petronet LNG shares rallied nearly 8 percent intraday Friday after better-than-expected earnings for July-September quarter but analysts are doubtful over consistency in performance.
CIMB has retained its reduce rating with a target price of Rs 280, saying the recent re-rating is justified only if the contract volumes are exceeded, which it believes is unlikely.
It expects net cash of Rs 5,440 crore at end-FY20. Hence, clarity on the use of cash will emerge as a key stock price driver. Higher volume at Dahej is the main risk to call, it says
