Power Grid Corporation of India Ltd. share price target

Transmission business will continue to see steady growth on the back of strong underlying transmission numbers, expected to further benefit from high surcharge income. Telecom and Consultancy businesses also continued to perform. With promising outlook, we reiterate our BUY rating with a revised TP of Rs. 212 based on 1.7x FY23E BVPS. Topline rises on all-round growth across businesses During Q2FY22, standalone revenue grew 9.6% YoY to Rs. 9,929cr helped by growing demand across businesses. Revenue from Transmission business came in at Rs....

542.76 crore. Provision for interest fell 6% to Rs 1959.02 crore. Provision for depreciation rose 11% to Rs 4225.40 crore. Provision for tax was expense of Rs 549.02 crore, compared to Rs 682.35 crore. Profit after tax rose 18% to Rs 3676.38 crore. Regulatory income was an expense...

Reported revenues came in at | 9929.2 crore vs. our estimate of | 10028.5 crore, implying growth of 9.6% YoY. However, transmission segment revenues came in at | 9679.6 crore, up 7% However, PAT came in at | 3338.7 crore, below our estimate of | 3471.9 crore as reported other income fell short of our expectations...

Net sales (including other operating income) has increased 8% to Rs 10216.48 crore. With OPM contract by 10 bps to 88.1%, the operating profit was up 8% to Rs 8998.55 crore. After accounting for 51% fall in other income to Rs 175.13 crore, the PBIDT was up 5% to Rs 9173.79 crore. With interest and depreciation stand higher by 1% and 5% to Rs 2215.96 crore and Rs...

EBITDA improved 8.4% YoY, with margin expanding 480bps YoY aided by higher sales, but partially offset by higher staff costs. PAT for the quarter grew 10.5% YoY, further helped by higher other income and...

higher revenues. The company's consolidated net profit had stood at Rs 3,313.47 crore in the quarter ended on March 31, 2020. Its total income during January-March increased to Rs 10,510.33 crore, from Rs 10,148.26...

It bagged INR90-100b in awards in recent months, which is a positive sign, given a declining order book. Nevertheless, the capex trajectory is on a decline. With proceeds from InvIT, we see strong scope for higher dividends. Valuations at 1.6x FY22E P/BV and 7-8% dividend yield remains attractive for a company with steady RoEs of 17-18%. We maintain our Buy...

The launch of Power Grid (PWGR)'s InvIT marks the start of monetization plans for its tariff-based competitive (TBCB) projects. The initial InvIT would house five transmission projects (gross block: INR72b). For PWGR, the same accounts for 3% of its total gross block and hence the value accretion is not large. We had valued these five assets at INR36b. Against this, we see a potential realized value of INR53b INR27b from offer for sale, INR13.7b of a 15% stake in InvIT, and ~INR12b est. value for a 26% stake in SPVs implying an INR3/sh accretion....

PGInVIT is an infrastructure investment trust ("InVIT") established in Sep'20 to own interstate power transmission assets in India. Of 23 inter-state power transmission projects owned by the Sponsor, Power Grid Corporation of India (PGCIL)- PGInVIT will initially acquire five projects (Initial Portfolio Assets) with a total network of 11 transmission lines, including six 765 kV transmission lines and five 400 kV transmission lines, with total circuit length of approximately 3,698.6ckm. Each of the Initial Portfolio Assets have been...

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