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Last Updated : Feb 04, 2020 01:07 PM IST | Source: Moneycontrol.com

Power Grid share price rises 2% as Motilal Oswal expects double-digit returns

The company on January 31 said its standalone quarterly net profit stood at Rs 2,673.49 crore in December 2019, up 14.68 percent from Rs 2,331.17 crore in December 2018.

 
 
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Shares of Power Grid Corporation of India climbed almost 2 percent intraday trade on February 4 and looked on course to extend their gains into the second consecutive session.

The company on January 31 said its standalone quarterly net profit stood at Rs 2,673.49 crore in December 2019, up 14.68 percent from Rs 2,331.17 crore in December 2018.

Standalone net sales stood at Rs 8,991.98 crore in December 2019, up 6.15 percent from Rs 8,471.17 crore in December 2018.

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After the December quarter numbers, brokerage firm Motilal Oswal Financial Firm maintained its buy recommendation on the stock with a target price of Rs 229, 22 percent upside from the closing price of February 3.

Power Grid’s Q3FY20 results highlight the company’s strong performance in the transmission segment, with adjusted PAT increasing 13 percent YoY. FY20 commissioning target though would be dependent on timely commissioning of the Raigarh-Pugalur (nearly Rs 9,000 crore) project," Motilal said.

While declining order book and capitalization schedule does put the risk of a slowdown in growth, valuations at 1.3 times FY22E P/BV and a nearly 7 percent dividend yield are attractive for a company with a steady return on equity (RoEs) of about 17 percent, Motilal added.

Around 13:00 hours, shares of Power Grid traded 1.41 percent up at Rs 190.35 on BSE

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First Published on Feb 4, 2020 01:07 pm
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