Petronet LNG has been upgraded to a 'buy' rating by UBS due to a positive growth outlook for the company. The target price has also been increased to Rs 400 per share from Rs 320, indicating a potential upside of 20% from the previous close.

This upgrade comes after Petronet LNG reported a 4.17% year-on-year increase in consolidated net profit, reaching Rs 849 crore for the second quarter. UBS highlights Petronet LNG's advantageous position in the growing liquefied natural gas (LNG) market in India. The company is actively expanding its capacity to meet the increasing demand, especially with the five long-term LNG supply contracts secured by India, which are set to begin in 2026.

Despite facing competition in the sector, the Dahej terminal is expected to handle 19-20 million metric tons per annum (mmtpa) of LNG.