Avoid buying THIS PSU stock; Check recommendation, target price

Shares of Petronet LNG, an oil and gas sector PSU company, fell on Thursday, January 2nd. The stock declined by more than 5% at the market opening

Petronet LNG opened at ₹344 on January 2nd, compared to the previous closing of ₹347, and reached an intraday low of ₹327. As of 11 am, the stock was trading at ₹325.50, down 6.36%

New issues from the Petroleum and Natural Gas Regulatory Board (PNGRB) and a sell recommendation from Citi have led to a significant drop

PNGRB has raised questions about Petronet LNG's regasification tariff. The company earned substantial profits by increasing gas rates from its Dahej plant

PNGRB states Petronet LNG increased regas tariffs annually, generating profits. If regasification tariffs fall under PNGRB's purview, the company's pricing power will be affected

A negative catalyst watch has been initiated on Petronet LNG for three months. Investors are advised to exercise caution due to regulatory risks and Citi's sell recommendation

Falling under PNGRB's purview could impact the company's profits, potentially lowering the share price. Global brokerage firm Citi has issued a sell recommendation for this stock

Citi has given a target price of ₹310 for the stock, which is about 10% lower than its current level. Investors are advised to exercise caution for the time being

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