PETRONET LNG: THE SAFE ONE (BEST ENTRY PRICE)

On the TECHNICALS, the 2 year Price Charts clearly show a healthy uptrend. If one were to look for key supports, there is solid support at SMA 200 levels at 140 and then a multi-year support at 122 levels. The SMA 200, in fact has not been decisively broken in the last 2 years even once; it has come close on 23/2/2010, 30/6/2010 and 24/2/2011, but has always smartly rebounded.

Briefly looking at the FUNDAMENTALS,  the Srip is an absolute dazzler; it has all the right credentials; is in the right space for volume growth of base throughput as well as re-gasification; the demand trajectory is terrific in the gas -starved industrial hinterland; it has ambitious capacity expansion plans and has delivered excellent results consistently. At CMP 157 it is trading at PE TTM 15 odd and  PE FY12E of about 12x, which is reasonable. 

Overall, for the long term investor,the Scrip is a Strong buy in the range 140-155 and all dips in case of Market Capitulation.