Power Grid Corporation of India Ltd. share price target

Looking ahead, we believe that PGCIL's fundamentals would continue to remain strong on the back of huge capex pipeline and least exposure to operational risks i.e. fuel and SEBs' weak financials. Continuing to remain positive on PGCIL, we reiterate our BUY recommendation...

Power Grid reported its Q2FY18 results, which were below our estimates on all counts. Revenue growth, though in double digits, was below estimates. This coupled with higher depreciation charges also led to lower growth on the profitability front. Revenues came in at | 7353.1 crore, up 17.6% YoY (I-direct estimate of | 7606.8 crore). Transmission segment revenues for Q2FY18 grew 18.8% YoY, which was at | 7063.4 crore. On the other hand, consultancy and telecom...

Valuations not appreciating even nominal growth; Re-iterate Buy Power Grid's (PWGR) 2QFY18 PAT grew 14% YoY to INR21.4b (est. INR20.9b). Capitalization was up ~50% YoY to INR99.7b. The 1H capitalization of ~INR135b (up...

Background: Power Grid Corporation Indian Limited (PGCIL) is the Central Transmission Utility (CTU) of the country under Ministry of Power and is one amongst the largest Power Transmission utilities in the world. PGCIL is playing a vital role in the growth of Indian power sector by developing a robust Integrated National Grid and associating in the flagship program of Govt. of India to provide power for all. The company has 141,920 ckm of transmission lines,...

Q1FY18 was slightly below our estimate on lower capitalization at Rs 35 bn (vs. est. Rs 80 bn). As expected, provision on wage hike on Pay Commission recommendations (employee cost up 50%) hurt core profitability.

Power Grid Corporation of India (PGCIL) continued to deliver a strong performance in 1QFY18, with its reported net profit growing by 13.6% YoY to Rs21.5bn in line with our estimate of Rs21.8bn. Its revenue rose by 17.3% YoY to Rs71.8bn in 1QFY18 in line with our estimates. Net profit growth was lower than revenue growth on account of Rs0.86bn provisioning towards employee cost, which is a pass through. Looking ahead, we believe that PGCIL's fundamentals would continue to remain strong on the back of huge capex pipeline and least exposure to operational risks i.e. fuel and SEBs' weak financials. Continuing to remain positive, we reiterate our BUY...

Public sector undertaking transmission major Power Grid Corporation of India Ltd.'s net profit missed market expectations in the three months ended June on higher expenses. For the quarter ended June 17, net sales of Power Grid stood at Rs 6930.45 crore up by 16% YoY. Net revenue from Transmission business, which constitutes around 95% of total revenue, was up 16% to Rs 6930.45 crore. Total expenses rose nearly 23 percent from last year to Rs 4874.6 crore. Employee benefit...

Power Grid reported its Q1FY18 performance. Though in double digits, the numbers were lower than our estimates largely tracking lowerthan-expected growth witnessed in the transmission segment (16.5% YoY growth vs. estimate of 23% YoY). Reported revenues increased 17.3% YoY to | 7181.4 crore (vs. I-direct estimate: | 7519.0 crore). Transmission segment revenue grew to | 6930 crore, up 16.5% YoY. On the other hand, consultancy revenues at | 212 crore were higher than our estimate of | 144.5 crore. However, telecom segment revenues of | 157.7 crore were lower than estimates of | 193.5 crore...

PGCIL capitalized Rs 310 bn in FY17 (Rs 150 bn in Q4FY17), consequently achieving its capitalization target for FY17. Long-term visibility on capitalization is intact, with ~Rs 1.3 trn projects to be completed over next 4 years

Background: Power Grid Corporation Indian Limited (PGCIL) is the Central Transmission Utility (CTU) of the country under Ministry of Power and is one amongst the largest Power Transmission utilities in the world. PGCIL is playing a vital role in the growth of Indian power sector by developing a robust Integrated National Grid and associating in the flagship program of Govt. of India to provide power for all. The company has 139,709 ckm of transmission lines,...