Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,921.50-96.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Edelweiss retains buy on Power Grid Corporation, target price Rs 233

Buy Power Grid Corporation of India Ltd. at a price target of Rs 233.0 .

ETMarkets.com|
Updated: Nov 11, 2019, 08.40 AM IST
0Comments
ThinkStock Photos
Buy-sale6
Edelweiss has retained buy rating on Power Grid Corporation of India in the long term with a target price of Rs 233. Shares of Power Grid ended down 1.3% at Rs 191.70 on Friday while the BSE sensex closed 330.13 points down at 40,323.61.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 9051.29 crore, down -1.40% from last quarter sales of Rs 9179.63 crore. The company has reported net profit after tax of Rs 2523.64 crore in the latest quarter.

Investment Rationale


Power Grid's Q2 profit was along expected lines, said Edelweiss. Importantly, capitalisation of assets picked up pace and jumped 2 times sequentially, it said. The management is confident of commissioning the Raipur-–Pugalur line which is critical to meet its FY20 capitalisation guidance, said Edelweiss. Apart from new project wins, any development on asset monetisation through the investment trust (InvIT) platform is a key monitorable. Power Grid offers 13% earnings growth visibility over FY19–21, said Edelweiss. This, along with its inexpensive valuation and 4% dividend yield, is comforting, said Edelweiss.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Disclaimer: This recommendation is analyst's own and does not represent those of economictimes.com & ETMarkets.com. Please consult your financial advisor before taking any position in the stock/s mentioned.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service