Buy Power Grid Corp; target Rs 105: Firstcall Research
Brokerage house Firstcall Research is bullish on Power Grid Corporation of India and has recommended buy rating on the stock with a target price of Rs 105 in its November 30, 2013 research report.
December 04, 2013 / 13:53 IST
Firstcall Research report on Power Grid Corporation of India
"Power Grid Corporation of India (POWERGRID) is one amongst the largest Power Transmission utilities in the world. The company owns and operates about 1,02,540 ckt kms of transmission lines and the transformation capacity of about 1,76,323 MVA as on 31st October 2013 has reported its financial results for the quarter ended 30 SEPTEMBER, 2013. The company has achieved a turnover of Rs. 39994.90 million for the 2nd quarter of the current year 2013-14 as against Rs. 30857.70 millions in the corresponding quarter of the previous year. The company has reported an EBITDA of Rs. 34881.30 millions an increase of 22.81 percent in the corresponding quarter of the previous year and a net profit of Rs. 12392.00 million against Rs. 11258.90 million reported respectively in the corresponding quarter of the previous year. The company has reported an EPS of Rs. 2.68 for the 2nd quarter as against an EPS of Rs. 2.43 in the corresponding quarter of the previous year.""At the current market price of Rs.95.05, the stock P/E ratio is at 8.90 x FY14E and 7.81 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.10.68 and Rs.12.18 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21 percent and 20 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 8.93 x for FY14E and 8.82 x for FY15E. Price to Book Value of the stock is expected to be at 1.41 x and 1.20 x respectively for FY14E and FY15E. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 105 for Medium to Long term investment," says Firstcall Research Report.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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