Shares of Power Grid Corporation gained over a percent as Jefferies issued a 'buy' call on Power Grid with a target price of Rs 390 per share. The management has maintained its FY25 capex guidance and is optimistic about growth continuing until FY27.
Currently, Rs 1 lakh crore worth of bids are in the tendering stages, up 1.8x year-on-year, providing strong visibility on future growth, the brokerage said.
Jefferies also noted that the re-tendering of a Rs 12,700 crore order is expected to have only a minor impact on the company's overall guidance. Key drivers for potential stock upside include the robust bid pipeline and the prospect of higher dividend payouts, it added.
Follow our market blog to catch all the live action
Power Grid Corporation informed on Wednesday that it has been declared as the successful bidder under tariff-based competitive bidding to establish an Inter-State transmission system for the project namely “Transmission System for evacuation of power from Rajasthan REZ Phase IV (Part 2: 5.5 GW) (Jaisalmer/ Barmer Complex): Part H1” on build, own operate and transfer (BOOT) basis.
"The Letter of Intent (LoI) has been received by Power Grid Corporation of India Limited on 18th September 2024. The project comprises the establishment of new 765/400/220kV sub-station at Kurawar, 765kV & 400kV D/C Transmission Lines and associated bays extension works at other existing substation in the State of Madhya Pradesh.
At 10:17 am, Power Grid Corp shares were trading 0.8 percent higher at Rs 337.10 on NSE. The stock has rallied 41 percent so far this year, outperforming Nifty's returns of 16 percent. In the past 12 months, the counter has risen 65 percent. In comparison, Nifty rose 27 percent during this period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
