Is LPG a good stock to buy? We came across a bullish thesis on Dorian LPG Ltd. on r/ValueInvesting by VitaliiNoskov. In this article, we will summarize the bulls’ thesis on LPG. Dorian LPG Ltd.’s share was trading at $40.60 as of June 23rd. LPG’s trailing and forward P/E were 8.81 and 4.81 respectively according to Yahoo Finance.
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Dorian LPG Ltd. (NYSE: LPG) is a leading owner and operator of Very Large Gas Carriers (VLGCs) focused on the global transportation of liquefied petroleum gas, with a modern fleet of fuel-efficient ECO-design vessels and a dominant commercial partnership through the Helios LPG Pool that generated approximately 99% of fiscal 2026 revenue. The company serves blue-chip customers including major energy producers, commodity traders, and LPG importers worldwide, while also positioning itself for future energy transition opportunities through ammonia-capable and dual-fuel vessels.
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Following a cyclical downturn in fiscal 2025, Dorian delivered a strong recovery in fiscal 2026 as revenue increased 36.3% to $481.5 million and net income more than doubled to $193.7 million, resulting in a robust 40.2% net profit margin. Importantly, the company remained profitable even during weaker market conditions, highlighting the efficiency of its fleet and operating model. Dorian’s investment appeal is further supported by consistently high-quality earnings, with operating cash flow exceeding net income in every year over the past five years, demonstrating that profits are backed by real cash generation rather than accounting adjustments.
The balance sheet continues to strengthen through ongoing deleveraging, with equity rising to $1.14 billion and liquidity remaining healthy with a 2.67x current ratio. Despite these improvements, the stock trades at only 11.35x earnings, below the broader energy sector median, while offering a 7.34% dividend yield. The company also passes five of Benjamin Graham’s seven defensive investment criteria, reflecting attractive valuation, earnings stability, and long-term profitability.
Additional confidence comes from CEO John C. Hadjipateras, who made two meaningful open-market stock purchases totaling approximately $942,000. While freight-rate volatility remains a key risk, the combination of cyclical recovery, strong cash generation, shareholder returns, insider buying, and modest valuation presents a compelling bullish case for long-term investors.
Previously, we covered a bullish thesis on Golar LNG Limited (GLNG) by Value Science in February 2025, which highlighted the company’s undervalued FLNG platform, upside from commodity-linked tariffs, and potential growth through MkII vessel contracts and YPF-related opportunities. GLNG’s stock price has appreciated by approximately 26.91% since our coverage. VitaliiNoskov shares a similar view but emphasizes on Dorian LPG Ltd.’s cyclical recovery, strong cash generation, attractive dividend yield, insider buying, and discounted valuation.
Dorian LPG Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held LPG at the end of the first quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of LPG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LPG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
