Power Grid Corporation of India Ltd. share price target

Q1 revenues were in line with estimates (refer Exhibit 1), though PAT was ahead of estimates on lower interest costs. It has done a capex of Rs19bn, while capitalization was Rs12bn, during the quarter. It has guided for a capex of Rs105bn and capitalization of Rs200250bn in FY21. The current CWIP Rs363bn, while work in hand is Rs510bn. With reducing capex, we believe that dividends payouts can...

was up by 3% to Rs 3357.41 crore. The taxation was Rs 1019.68 crore (a swing of Rs 6239.58 crore from a write back of Rs 5219.90 crore in corresponding previous period) and thus the PAT was down by 72% to Rs 2337.73 crore. The regulatory income was Rs 975.74 crore (a swing of Rs 6401.1 crore from an expense of Rs 5425.36 crore in corresponding previous period). Thus the net profit after RI was up by 8% to Rs 3313.47 crore....

Despite impact of pandemic and economic situation, management further guided for capex of ~Rs105bn and capitalization of ~Rs200-250bn for FY21E. Power Grid Corporation of India (PGCIL) reported decent numbers amid the pandemic wherein revenue growth was driven by Transmission/ Consultancy segment (which was up 7%/3% YoY). Despite the current economic environment, Capex/Capitalization came in at Rs35.5/46.4bn in Q4. The...

22 June 2020 Power Grids (PWGR) 4QFY20 results highlight steady performance in the Transmission segment. Adj. PAT increased 7% YoY even as Consultancy/ Telecom EBIT declined 7%/4% YoY. FY20 capitalization stood at INR182b given the delay in commissioning of Raigarh-Pugalur. INR230b worth awards are up for bidding under various schemes; however, we expect some delays. In this context, a declining order book does put a risk of slowdown in growth. However, valuations at 1.3x FY22E P/BV and ~8- 9% FY22E dividend yield remain attractive for a company with steady RoEs of ~17%. with a DCF-based TP of INR222/share. Adj. for prior period revenue, INR4.25b of one-off gains on tariff order and INR1.22b of one-time tax, S/A PAT grew 7% YoY to INR28.6b (5% higher than est.).

Lower capex guidance implies higher FCF and thus potential for dividend hikes. We maintain our BUY rating on the stock with a target price of Rs. 223 based on 1.5x FY22E BVPS. Operational performance remains strong Standalone revenue from operations in Q3FY20 grew by 6.0% YoY to Rs. 8,992cr primarily contributed by transmission segment (more than 96% of total revenue) with revenues at Rs. 8,814cr in Q3FY20 (+6.6% YoY). Consultancy segment (around 2% of total revenue) reported revenues at Rs. 144cr (down 7.7% YoY) and revenue from...

The objective of Power Grid Corporation of India Ltd is to create a strong and vibrant national grid in the country to ensure the optimum utilization of generating resources, conservation of an eco-sensitive right of way and the flexibility to accommodate the uncertainty of generation plans. Presently, Power Grid is one of the few telecom players with a marked presence in remote areas and is providing highly...

Management has guided for capex of Rs105bn (Vs. Rs150bn in FY20E) and capitalisation of Rs150bn for FY21E. Power Grid Corporation of India (PGCIL) reported steady set of 3QFY20 earnings which were broadly in-line with our estimates. PAT for the quarter...

3 February 2020 Power Grids (PWGR) 3QFY20 results highlight the companys strong performance in the transmission segment, with adj. FY20 commissioning target though would be dependent on timely commissioning of the Raigarh-Pugalur (~INR90b) project. While declining order book and capitalization schedule does put risk of a slowdown in growth, valuations at 1.3x FY22E P/BV and ~7% dividend yield are attractive for a company with steady RoEs of ~17%. Adj. for prior period revenue and pay commission provisions, S/A PAT grew 13% YoY to INR26.5b (4% higher than our est.) on better performance of the transmission business. regulated equity growth of 9% YoY, indicating better transmission RoEs YoY for the quarter. segment displayed subdued 4% YoY growth while profitability for segment declined 11% YoY. Overall, capitalization for the quarter stood at ~INR52b while capex was at ~INR40b.

Power Grid Profit beats estimates on higher other income Standalone sales of Power Grid Corporation of India (PGCIL) were up by 6% to Rs 8991.98 crore for the quarter ended Dec 2019. But with operating profit margin contract by 180 bps to 87.6%, the growth at operating profit was just 4% to Rs 7876.24 crore largely facilitated by higher...

Power Grid signs a JV with NTPC for setting up National Electricity Distribution Company (NEDCL) to undertake distribution of electricity and related activities. Company paid dividend of Rs. 2.50 per share during the quarter. TBCB projects on track; Maharatna' status enhances Board power TCBC (Tariff Based Competitive Bidding) projects are running smoothly with success in 7 projects YTD out of 13 bids participated. The total value of these projects is Rs. 6,599cr, consisting of Rs. 3,269cr worth of inter-state projects (RE related works) and Rs. 3,330cr of intra-state projects (MP-1, UP-2). As of H1FY20, the current works in...