Power Grid Corporation of India Ltd. share price target

For 2QFY2016, Power Grid Corporation of India (PWGR) reported a 16.8% yoy increase in transmission revenues to Rs4,708cr, which is 3.5% below our estimate of Rs4,878cr, on account of lower than expected capitalisation. For the quarter, capitalisation stood at Rs5,053cr, well below our estimate of Rs6,246cr. Capitalisation was expected to remain strong on account of spill-over in the commissioning of certain projects from 1QFY2016 to 2QFY2016 and the commissioning of the Biswanath Chariyali Agra transmission line in 2QFY2016. The company incurred a capex of Rs5,088cr during the quarter, which is higher than our estimate of Rs4,850cr. We reduce our FY2016 capitalisation estimate to Rs21,991cr, as against Rs22,257cr earlier. Lower operating expenses as a percentage of revenues and higher consultancy income helped the company in improving its EBITDA margin by 188bp yoy to 87.8%. In terms of operating performance, the impact of lower than expected revenue was partially offset by operating efficiencies, with transmission and employee expenses coming in lower than expected. The EBITDA came in at Rs4,318cr, as against our estimate of Rs4,368cr. Outlook and valuation We have reduced our estimates marginally to factor in the lower-than-expected capitalisation in 2QFY2016. We expect PWGR to report a revenue and EBITDA CAGR...

9 Even as debt is abovenormative levels of 70%, management does not see a risk of equitydilution.Thisisinlinewithourview,asweexpectassetcapitalisation(Rs526bn) inFY1617tooutpacecapex(Rs450bn),therebynotresultinginanequitygap....

Background: Power Grid (PGCIL) is India's largest power-transmission firm, carrying 55% of the power generated on the country's transmission lines. It owns and operates 92,946 circuit kilometres of transmission lines and 150 electrical substations. It also undertakes grid management and load-dispatch functions. PGCIL owns and operates a fibre-optic network of over 25,000km, connecting about 200 cities. It leases bandwidth available on its network to major telecoms operators. PGCIL is undertaking an ambitious INR 1tn capex programme to expand its transmission network in the 12th five-year plan. The government owns 69.42% of PGCIL....

While valuations across sectors have fallen, we remain bullish on domestic stories, such as (a) power utilities like NTPC and Power Grid with their annuity cash flow, regulated ROEs and high predictability, (b) select cement companies where we see value in terms of EV/tonne plus operating leverage playing out as infrastructure build-out takes place ? be it roads, railways, ports, or housing for all

Background: Power Grid (PGCIL) is India's largest power-transmission firm, carrying 55% of the power generated on the country's transmission lines. It owns and operates 92,946 circuit kilometres of transmission lines and 150 electrical substations. It also undertakes grid management and load-dispatch functions. PGCIL owns and operates a fibre-optic network of over 25,000km, connecting about 200 cities. It leases bandwidth available on its network to major telecoms operators. PGCIL is undertaking an ambitious INR 1tn capex programme to expand its transmission network in the 12th five-year plan. The government owns 69.42% of PGCIL....

PGCIL's Q1FY16 PAT (Rs13.6bn, +14% yoy) was in line with estimates, led by strong asset capitalisationofRs70bntillJuly(Rs45.4bninQ1FY16);wemaintainthatPGCILisoncourse toachieveassetcapitalisationofRs230240bninFY16andexpectthestrongtrajectoryto...

Power Grid Corporation Ltd. had organised an Analyst Meet on 11th August, 2015 to discuss the Q1FY16 results. Following are the key takeaways from the Meet: Lower Transmission and other expenses led to EBITDA margin expansion...

Power Grid Corporation of India (PGCIL) reported Rs13.66bn net profit in 1QFY16, a growth of 20.2% yoy, in-line with our expectation of Rs13.82bn on account of better execution. Company reported Rs47.1bn revenue, a growth of 19.8% yoy,...

yoy to Rs 45.5bn led by capitalisation of Rs 50bn (37% yoy) on a higher base. CapitalisationwaslowerthanourestimateofRs60bn,asfewlargesizeprojectsslipped toFY16.Consultancyincomewasdown10%yoyasthepreviousyearhadahighvalue...