Buy Power Grid Corporation of India, target price Rs 255: JM Financial

JM Financial has buy call on Power Grid Corporation of India with a target price of Rs 255. The current market price of Power Grid Corporation of India is Rs 217.65. Time period given by analyst is over 2 years when Power Grid Corporation of India price can reach defined target.

Power Grid Corporation of India, incorporated in the year 1989, is a Large Cap company (having a market cap of Rs 151855.61 Crore) operating in Power sector.

Power Grid Corporation of India key Products/Revenue Segments include Transmission Revenue, Other Operating Revenue, Consultancy Income and Income From Telecom for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 11349.44 Crore, up 1.62 % from last quarter Total Income of Rs 11168.54 Crore and up 7.94 % from last year same quarter Total Income of Rs 10514.74 Crore. Company has reported net profit after tax of Rs 3674.53 Crore in latest quarter.

The company’s top management includes Mr.K Sreekant, Mr.Dilip Nigam, Mr.K N Onkarappa, Mr.Ram Naresh Tiwari, Mr.Chetan Bansilal Kankariya, Mr.Ravisankar Ganesan, Mr.Abhay Choudhary, Mr.Vinod Kumar Singh, Mr.Ravindra Kumar Tyagi, Mr.Mohammad Afzal. Company has T R Chadha & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 698 Crore shares outstanding.

Investment Rationale
India’s largest power transmission utility, is well poised for the next leg of growth with upcoming auctions for ISTS as part of the Green Energy Corridor, noted the brokerage firm. JM Financial expects PGCIL to deliver c.6% EPS CAGR and c.7% dividend yield over FY22-25.

Promoter/FII Holdings
Promoters held 51.34 per cent stake in the company as of 30-Sep-2022, while FIIs owned 36.84 per cent, DIIs 13.79 per cent.