Shares of Petronet LNG plunged nearly 5% to hit a fresh 52-week low on the BSE today, March 20, even as the Indian stock market rebounded after yesterday’s drubbing, amid bearish views from brokerages as the Middle East war is expected to weigh on the company’s volumes.
The gas stock dipped 4.67% to ₹258.70, its lowest level in a year, following bearish views from brokerages. Petronet LNG shares have lost 19% so far in March, putting them on track for the worst monthly decline in six years.
India, one of the world’s biggest oil importers and consumers, has been hit hard by the US-Israeli war against Iran as energy shipments via the Strait of Hormuz were disrupted. The Strait accounts for 20% of the global crude oil passage.
Why are Petronet LNG shares falling?
Against this backdrop, brokerages have shared their bearish views on the stock, with Japan-based Nomura slashing the target price for Petronet LNG shares, according to media reports.
CNBC TV-18 earlier today reported that Nomura, while maintaining a ‘buy’ call on the gas stock, slashed the target price to ₹340 from ₹370 earlier, citing impact on volumes and earnings amid the ongoing war in the Middle East.
Qatar has announced a force majeure amid an attack on its facilities, which is a significant setback for India as New Delhi is the second-biggest client of the West Asian nation.
Total LNG export volume declined to 8.6 MMT for the week ended March 7 and further to 7.8 MMT for the week ended March 14, compared to an average of 9.6 MMT per week in February 2026. This decline was largely driven by a sharp drop in volumes from Qatar, which fell from 1.7 MMT to 0.06 MMT.
India consumed 33.15 million metric tons of liquefied petroleum gas, mainly used as cooking fuel, last year, with imports accounting for about 60% of demand, according to data from Reuters. Typically, about 90% of LPG imports come from the Middle East.
Nomura believes that Indian supplies could resume once the current force majeure is lifted, as India-specific trains were not affected.
Additionally, Systematix Group opined that with the recent strike at energy facilities, including upstream and refining assets across the Gulf countries, a further rise in prices and disruption of volume is likely, which may impact India. It added that repairing and restarting the supply may also take a longer time which would bring a long-term pain to the sector.
It has removed Petronet LNG from its top pick.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
