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.
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.
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.
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