Petronet LNG shares slump on broker downgrades after earnings lag estimates

Petronet LNG shares closed at a loss of over 4 per cent on the Bombay Stock Exchange  after a second day of falls on broker downgrades as its June-quarter earnings lagged some analysts' estimates.

The sock was down 4.5 per cent in early trade, but closed at Rs 172.30 per share, registering a loss of 7.65 points. At the National Stock Exchange, the share price closed at Rs 172.75, down 7.45 points (or 4.13 per cent).

Credit Suisse downgraded the stock to "underperform" from "neutral". Sustained losses at Kochi terminal made earnings cuts likely, the broker added.

HSBC also cut the stock's rating to "underweight" from "neutral", saying gain of 47 per cent in 2014 so far captured upside.

Petronet's shares were trading at Rs 172.05 a piece, down 7.9 points, at 1:52 pm.

The company on Monday said April-June profit fell about 31 per cent to Rs 1.57 billion.

Over 3.45 lakh shares of the company were traded in the BSE on Tueday, while at the NSE over 30 lakh shares exchanged hands.