Khambatta Securities has given Buy recommendation for Power Grid Corporation of India with a target price of Rs. 244 in its research report issued on Feb 17, 2022

Khambatta Securities’ research report on Power Grid Corporation of India

Power Grid Corporation of India (PGCIL) reported modest results in 3Q FY22. Total income grew by 3% y-o-y to ₹ 10,447 crores. Transmission, Consultancy and Telecom income registered a growth of 3%, 40% and -13% y-o-y, respectively during the quarter. EBIT was flattish at ₹ 6,108 crores vs ₹ 6,058 crores reported in the same quarter last year. PAT registering a de-growth of 2.2% y-o-y and 2.5% q-o-q to ₹ 3,293 crores in 3Q FY22 as the company reported lower surcharge income, interest income from subsidiaries and JVs, and dividend from subsidiaries. 9M FY22 PAT (ex-exceptional items) grew by 49% y-o-y.

Outlook

We maintain a BUY on PGCIL at 10x FY24E EPS at ₹ 244 with a 24% upside from current levels.

More Info on Trent

At 13:54 hrs Power Grid Corporation of India was quoting at Rs 196.95, up Rs 0.70, or 0.36 percent.

It has touched an intraday high of Rs 198.85 and an intraday low of Rs 196.00.

It was trading with volumes of 515,061 shares, compared to its thirty day average of 700,021 shares, a decrease of -26.42 percent.

In the previous trading session, the share closed down 3.52 percent or Rs 7.15 at Rs 196.25.

The share touched its 52-week high Rs 220.85 and 52-week low Rs 148.88 on 27 January, 2022 and 12 April, 2021, respectively.

Currently, it is trading 10.82 percent below its 52-week high and 32.29 percent above its 52-week low.

Market capitalisation stands at Rs 137,381.54 crore.

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