Navigating The Trough: A Value Case For Dorian LPG

Apr. 26, 2025 4:32 AM ETDorian LPG Ltd. (LPG) StockLPG
The Alpha Analyst
615 Followers
(7min)

Summary

  • Dorian LPG is undervalued with a trailing twelve-month PE of ~5 and a forward PE of ~7, making it a value buy.
  • Dorian's strong cash buffer supports potential for decent payouts in 2025, although payouts could be lower.
  • Strategic investments in digitalization and fuel-efficient vessels, along with rising LPG demand in India, offer long-term growth prospects.
  • Investors with a 2-3 year horizon can expect recovery and reasonable returns, making Dorian a "Buy" despite short-term turbulence.

A gas tanker navigating the Bosphorus, showcasing the vital role of Istanbul in the global LPG industry and fuel transportation

frantic00/iStock Editorial via Getty Images

Dorian LPG (NYSE:LPG), with its eye-catching dividend payout history, and a cyclical correction over the past year, comes across as a value buy at current levels. However, growth concerns weigh, with the outcome of the tariff details still

This article was written by

615 Followers
I am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice President at Barclays, I led teams in model validation, stress testing, and regulatory finance, developing a deep expertise in both fundamental and technical analysis. Alongside my research partner (also my wife), I co-author investment research, combining our complementary strengths to deliver high-quality, data-driven insights. Our approach blends rigorous risk management with a long-term perspective on value creation. We have a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable ideas for investors seeking to outperform the market.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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