Power Grid Corporation of India Ltd. share price target

Power Grid Corporation of India (PGCIL) has reported another stable quarter of growth in Q2FY23. On a consolidated basis, reported revenue grew 8.6% YoY to Rs111.5bn, while EBITDA was up 3.5% to Rs94.3bn and reported PAT was up 8.1% at Rs36.5bn. Adjusted PAT at Rs34.1bn was up 3.7% YoY.

Power Grid Corporation of India’s (PGCIL) reported revenues for Q1FY23 were up 6.7% YoY to Rs109bn.

Power Grid Corporation of India (PGCIL) reported another stable quarter of growth in
Q1FY23. On consolidated basis, reported revenues grew 6.7% YoY to Rs109bn, while
EBITDA was up 2.8% to Rs92.5bn and reported PAT was at Rs38bn.

Looking at strong business outlook, project execution and continuously growing portion of Renewable energy into its portfolio, we see strong growth potential in the business. However, rising fuel costs may put margins under pressure in the near term. Hence, we downgrade our rating to HOLD with a revised TP of Rs. 204 based on 1.5x FY24E BVPS. Resilient topline growth; Margins under pressure The company's standalone revenue grew by 3.4% YoY to Rs. 10,001cr on the back of decent performance by Transmission and strong growth in Consultancy, partly offset...

Standalone revenues came in at | 10000.1 crore, up 3% YoY, which was a tad below our estimates of | 10650 crore. Transmission segment (98% of overall revenues) grew 3% YoY to | 9800.6 crore. Ensuing PAT came in at | 3349 crore vs. our estimate of | 3369.6 crore...