Equirus keeps long call on
PI Industries, target Rs 5,500

#1 PHC is a leading provider of novel patent-protected biological products to global markets
#2 Core patented products act as ‘vaccines for plants’, improving crop yield & quality
#3 Believe PI would also be able to transfer tech to manufacture biological products
#4 Biological products TAM could be of more than USD 10 billion

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New case study

Petronet LNG Limited

Petronet LNG Limited (PLL) is an energy company that imports, stores, regasifies, and supplies liquefied natural gas (LNG) in India. The company was formed in 1998 as a joint venture between the Government of India and several public sector companies, including Indian Oil Corporation Limited (IOCL), GAIL (India) Limited (GAIL), Bharat Petroleum Corporation Limited (BPCL), and Oil and Natural Gas Corporation Limited (ONGC). PLL also has other equity holders, such as public, FIIs, FPIs, and mutual funds. The company's headquarters are in New Delhi, India

The company is in the business of transportation, storage and regasification of LNG. It owns and operates 2 regasification terminals at Dahej (Gujarat) and Kochi (Kerala) with a combined capacity of 22.5 MMTPA. It accounts for 33% of gas supplies in the country and handles ~75% of LNG imports in India.

Expansion plans

Dahej Terminal- Company is undertaking a highly cost-effective brownfield expansion of regasification capacity of Dahej Terminal from 17.5 MMTPA to 22.5 MMTPA at an estimated cost of Rs. 600 Cr.

Third Jetty- Company is also implementing a third berth project at Dahej, through an investment of about Rs. 1700 Cr. It will handle Liquified gasses, namely ethane and propane besides LNG.

Storage Tanks- To enhance the LNG storage capacity of around 1 million CuM at Dahej terminal, the construction of two additional LNG storage tanks of a gross capacity of 1,85,000 CuM each has been taken up at a cost of approx. Rs. 1250 Cr. The work is completed 70% as of March 2023.

Storage at Odisha Company is setting up an LNG terminal at Gopalpur, Odisha with an initial capacity of 4 MMTPA at a cost of approx. Rs. 2300 Cr.

Other Projects

Company is taking up initiatives to develop the small-scale LNG market in the Country and has been promoting the environment-friendly LNG as a fuel for M&HCVs, mining equipment etc. It has developed 4 LNG Dispensing Stations on southern national highways in the first stage also identifying the locations for setting up additional 10 LNG stations.
Company is in the process of identifying Project Sites in Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Odisha etc. for the setting up of the Compressed Bio-Gas Plants. Company is also exploring ventures into the Green Hydrogen value chain for which, dialogues have been initiated with various business partners.

Petronet LNG 300-333
Expected level 385
Support 279

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ICICI Securities Study Report


ICICI Securities was incorporated in 1995 is a subsidiary of ICICI Bank Ltd. It is an integrated technology-based platform which operates www.icicidirect.com, a virtual financial supermarket, meeting the three need sets of its clients - investments, protection, and borrowing through its four lines of businesses - broking, distribution of financial products, wealth management, and investment banking. I-Sec serves customers ranging from the retail and institutional investors to corporates, high net-worth individuals, government. The company’s product portfolio is spread across retail and institutional broking, distribution of third-party products such as mutual funds, life insurance, fixed deposits, loans disbursements, and wealth management services, amongst others. As on 31st March 2024, the company serves ~1 cr clients. They have a NSE active client market share of 4.4%. The company operates its business via three operating segmentsBroking & Commission - This business segment consists of equity, currency & derivative brokerage services, the distribution of thirdparty products, research, and fees from financial planning/education, interest on bank fixed deposits held by exchanges as margins for the brokerage business, interest on trade receivables from brokerage business, interest on margin funding, and income derived from the trading of securities by the broking and commission business. Advisory Services – This business segment consists of equity capital markets services and financial advisory services that cater to corporate clients, the government and financial sponsors. Investment & Trading – This business segment consists of treasury and proprietary trading activities. Income from this segment includes income derived from the trading of securities and interest received on investments for company’s own account. The board approved the delisting of the company via share swap deal, that would make ICICI Securities a wholly owned subsidiary of ICICI Bank subject to requisite approvals.

#SALES GROWTH 5 Year CAGR: 24.3%

In FY24, the company reported a growth in net sales of 47.8% to ₹5,049 cr. This was on account of ~50% growth in the broking income led by increase in retail ADTO both in derivative & cash market and higher block deals from institutional business. Interest income grew by 67% YoY, on account of increase in the MTF book and MTF & fixed deposits yields. Income from services grew by 30% YoY, primarily on account of increase in issuer services & advisory fee income and income from distribution products. During FY23, the net sales declined by 0.6% YoY and stood at ₹3,416 cr. This was on account of decline in the brokerage income due to fall in retail ADTO in the cash market which was offset by growth in distribution business and interest income.

#EBITDA #GROWTH 5 Year CAGR: 33.6%

In FY24, EBITDA was ₹3,371 cr, an increase of 60.3% compared to FY23. This was aided by an increase in revenue. However, operating expenses increased by 36% in line with increase in business volumes. During FY23, EBITDA declined on a YoY basis by 3.8% and stood at ₹2,101 cr, due to marginal increase in operating expenses of the company.

#PAT #GROWTH 5 Year CAGR: 28.2%

In FY24, PAT was at ₹1,695 cr, i.e., a growth of 52% as compared to FY23. There was a significant increase in finance cost due to rise in cost of borrowings and the company consciously did not pass the rate hike completely in H1 FY24. During FY23, the PAT declined by 19.2% YoY and stood at ₹1,118 cr. There was a significant increase in finance cost due to rise in cost of borrowings.

#EBITDA #MARGIN

EBITDA margin for FY24 improved to ~66.8%. During FY23, EBITDA margin declined by 210 bps and stood at 61.5%. The company continues to enjoy a healthy EBITDA margin due to high degree of operating leverag

#PAT #MARGIN

PAT margin for FY24 stood at 33.6%, an improvement by 88 bps YoY. During FY23, PAT margin declined and stood at 32.7%.

#ROCE

In FY24, the ROCE is expected to improve. In FY23, PBIT stood at ~₹2,037 cr and capital employed stood at ~₹5,747 cr.

#ROE

In FY24, ROE is expected to improve. In FY23, the ROE declined to 42.93% on account of decline in profitability. The net worth of the company has been increasing over the years on account of increased retained earnings.