171.15 3.75 (2.24%)
NSE Jul 30, 2021 15:31 PM
Volume: 25.6M

HDFC Securities
PSP Projects: PSP Projects (PSP) reported revenue/EBITDA/APAT at INR 5/0.6/0.4bn for the quarter, largely in line with our estimate. The company witnessed turnaround in terms of order inflow as it bagged projects worth INR 22bn during the quarter. With that, the order book stood at INR 41bn at the end of FY21. PSP has guided for INR 20/18bn inflow/revenue and 11-12% EBITDA margin for FY22. As the Surat Diamond Bourse (SDB) project is coming to an end, PSP would qualify for the larger projects, leading to rerating of the stock. We have tweaked our FY22/FY23 estimates to account for the robust order inflow in 4QFY21 and impact of higher commodity prices on the margins. We maintain BUY on PSP with a TP of INR 510/sh (roll forward Mar-23, 12x Mar-23E EPS). Power Grid Corporation of India: PGCILs asset capitalisation in Q4FY21 increased by 21.5% YoY to INR88.9bn, while Capex declined 30.8% YoY to INR33.4bn. For FY21 as well, capitalisation increased 17.7% YoY to INR215bn while Capex declined 26% YoY to INR113bn. EBITDA, in Q4FY21, increased 8.4% YoY to INR87.5bn while PAT increased by 10.5% YoY to INR35.2bn, led by improved operating performances, higher other income, and lower interest expenses. PGCIL has recently participated and won projects with a strike rate of above 50%, which highlights the strong competitive edge it enjoys over its peers. The Board has also announced one bonus share for every three shares held. Further, with robust operating cash flow of ~INR310bn p.a, lower capex guidance of below INR100bn for FY22E, and comfortable...
Power Grid Corporation of India Ltd. is trading above it's 200 day SMA of 156.9
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