Prabhudas Lilladher

Petronet LNG (Buy)

CMP: Rs 149

Target: Rs 176

Petronet LNG has witnessed ~20 per cent correction from its highs on account of regulatory concerns over LNG terminals and cap on marketing margins. This, coupled with limited near-term earnings trigger, led to the subdued stock performance. However, we believe potential regulatory concerns are exaggerated and near-term flattish earnings profile overlooks the strong earnings potential, starting FY15.

Nirmal Bang

Hindustan Zinc (Buy)

CMP: Rs 125.40

Target: Rs 151

We took part in the visit organised by Hindustan Zinc Ltdcovering its Rampura Agucha mine, Sindesar Khurd mine, Chanderiya smelting complex and Dariba smelting complex, all located in Rajasthan. It largely focuses on exploration and mining activities, but most of the benefits would accrue from FY14-15. In the interim, it is looking at higher lead and silver output and cost efficiency as major profit drivers.

(This article was published on July 5, 2012)
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