Power Grid Corporation of India Ltd. share price target

Power Grid reported Q4FY17 results, which were below our estimates on all counts. Revenue growth, though in double digits, was below estimates whereas higher employee & other expenses dented EBITDA & profitability. Revenues came in at | 6712 crore, up 16.5% YoY (Idirect estimate: | 7127.6 crore). Transmission segment revenues for Q4FY17 grew 18.1% YoY to | 6648.5 crore. On the other hand, consultancy and telecom segment revenues came in at | 152.5 crore and | 149.1 crore, respectively, on the disappointing side Asset capitalisation totalled ~| 31000 crore (including TBCB projects)...

Revenue rose by 1.24% to Rs. 6712.04 Cr in Q4FY17 when compared to the previous quarter.

PGCIL capitalized Rs 160 bn (Rs 68 bn in Q3) in 9MFY17 while that in January 2017 was Rs 47 bn (Apr' 16 - Jan' 17 capitalization at Rs 207 bn). Further, the management is confident of capitalizing Champa Kurukshetra Pole I (Rs 60 bn) in Feb' 17. As a result, PGCIL is on track to achieve capita..

Revenue increased by 4.36% to Rs. 6500.95 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 22.14% when compared with Q3FY16.

ICICI Securities Ltd | Retail Equity Research Power Grid reported yet another set of strong Q3FY17 results wherein the company reported stronger-than-expected numbers across all parameters. The key surprise was from stronger-than-expected growth in the transmission segment. Revenues were at | 6629.76 crore, up 22.6% YoY (I-direct estimate of | 6501.1 crore). Key beat came in from transmission segment revenues that were at | 6208.8 crore vs. our estimate of | 6171.3 crore. On the other hand, consultancy segment...

Power Grids (PWGR) 3QFY17 PAT at Rs 19.3bn ( 19.6% YoY) was marginally ahead of our estimates, led by 71%/42% YoY growth in Consultancy/Telecom EBIT. Core T&D performance was in line with our estimates. Capex/capitalisation for 3QFY17 stood at Rs 52/68bn. While 9mFY17 capitalisation stands low at Rs 160bn, the same has improved significantly in 4QFY17 (Jan-17 YTD capitalisation stands at Rs 207bn). Consequently, we maintain our estimate of Rs 300bn capitalisation in FY17E.

Pecking order in power value chain: PowerGrid is better placed with strong business model as UDAY and power generation is expected to gather pace. It is a central transmission utility with more than 40% market share, commands transmission lines in excess of 127,539 kms and Sub-stations in excess of 248,164 MVA. Being a regulated state-owned enterprise, we believe this company has a capability to generate decent return on equity model. Speed of capitalization Better than internal target: We firmly believe the capability of the company to achieve the capitalization targets of Rs.280bn or excess in FY16. During 9MFY16, company...

ICICI Securities Ltd | Retail Equity Research Power Grid reported strong Q2FY17 results, which were a beat across all parameters. Revenues came in at | 6254.9 crore, which were ahead of our estimates of | 6158 crore. Transmission revenues came in at | 5945.7 crore, up 26.3% YoY against estimate of | 5885.3 crore. On the other hand, revenues from telecom and consultancy segment grew at a handsome rate of 62.4% YoY and 30.4% YoY, respectively Asset capitalisation totalled ~| 6688 crore while capital expenditure...

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 132,138 ckm of transmission lines, 213 sub stations,...