Shares of Petronet LNG on the BSE fell by 1.09% today, continuing a downward trend triggered by the company's decision to diversify into petrochemicals. This decline follows an initial drop of 8.5% when the company first announced its diversification strategy.
The company's plan includes a ₹21,000 crore (INR100 crore = approx. USD12 million) project to establish a petrochemical plant and propane and ethane handling facilities in Dahej, Gujarat. CEO AK Singh expressed confidence in the profitability of the project, but investors remain skeptical.
In response to the falling share price, brokerages Jefferies, Citi, and JP Morgan have revised their target prices for Petronet LNG. Jefferies downgraded the stock to 'Underperform', while Citi and JP Morgan maintained their 'Sell' and 'Overweight' ratings, respectively.
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