Petronet LNG has gained 31.5 per cent since the closing lows of Rs 122.77 in May. The rise comes on the back of benefits accruing to the company from the steady rise in demand for gas. The supply, however, has been limited, given the falling production from the Krishna-Godavari (KG) basin.

The company’s volumes have risen 6.3 per cent to 135 trillion British thermal units (TBTU), or 2.6 million tonnes, in the September quarter, as compared to 127 TBTU in the June quarter. The company has 10 mtpa capacity at Dahej (Gujarat) and is likely to commission its five mtpa Kochi plant by the March 2013 quarter. However, in the absence of a proper pipeline infrastructure, the contribution from Kochi could remain limited to one mtpa, analysts say. Thus, the benefits from the new capacities will not accrue in the near term.

Though the work at 5-MTPA Kochi terminal is likely to be completed in the current fiscal (FY13), the non-availability of pipeline infrastructure will limit the benefits

Petronet LNG has gained more than 32 per cent since the closing lows of Rs 122.77 in May 2012. The rise comes on the back of benefits accruing to the company from the steady rise in demand for gas. The supply, however, has been limited given the falling production from the Krishna Godavari (KG) basin. The company’s volumes have risen 6.3 per cent to 135 Trillion British Thermal Units (TBTU), or 2.6 MT (million tonnes), in the September 2012 quarter, as compared to 127 TBTU in the June 2012 quarter.

The improving visibility on commissioning of projects is a positive development and will accrue benefits in the long term, analysts say. The delay in commissioning of projects has been one of the key factors for underperformance of the stock.

However, Daga adds that the company has indicated that modernisation and expansion is progressing steadily and it would add two blast furnaces at IISCO and Rourkela Steel Plant, thereby adding 5 MT of hot metal capacity in the coming months. On the raw material front, SAIL has signed a Memorandum of Understanding (MoU) with the Chhattisgarh government for development of iron ore mines at Eklama iron ore deposit, which would bring some respite as developing green-field mines at Rowghat were becoming a tardy process due to Maoist activities.

However, the move did not have any impact on the JSW stock

Amid the alleged irregularities in the allocation of coal blocks taking their toll, on Monday, JSW Steel joined the list of companies whose coal blocks had been deallocated. The block, Gourangdih ABC in West Bengal, had been jointly allocated to JSW Steel and Himachal Emta Power. However, the move did not have any impact on the JSW stock. On the contrary, JSW shares closed at Rs 727.10 on the BSE on Tuesday, gaining two per cent over the previous close.