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Last Updated : Oct 03, 2019 03:06 PM IST | Source: Moneycontrol.com

Buy India Grid Trust; target of Rs 113: Edelweiss Securities

Edelweiss Securities is bullish on India Grid Trust has recommended buy rating on the stock with a target price of Rs 113 in its research report dated September 25, 2019.

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Edelweiss Securities' research report on India Grid Trust


Our conviction on India Grid Trust’s (IndiGrid) bright prospects is underpinned by: 1) significant spurt in IRR(270bps) & DPU(3%) led by recent acquisition & framework arrangement of assets; 2) fresh equity issuance & KKR coming on board as additional sponsor instill confidence & enhances visibility on future acquisitions (beyond ROFO); 3) lifting of related-party transaction cloud with KKR now controlling 74% in investment manager arm improves corporate governance (CG); and 4) 600bps spread between 10 year G-secs (6.7%) and IndiGrid ex terminal value (13.1%; AAA rated) is extreme and warrants rerating.


Outlook


Maintain BUY with a revised TP of INR113 (earlier-INR105) led by change in risk free rate and new assets. In our TP we now assign 3% to the growth value.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




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First Published on Oct 3, 2019 03:06 pm
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