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 .
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.
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.