Dolat Capital is bullish on Power Grid Corporation has recommended buy rating on the stock with a target price of Rs 245 in its research report dated May 31, 2019.
Dolat Capital's research report on Power Grid Corporation
PGCIL’s Q4FY19 results were more than our estimates, as year-end accounting adjustments contributed to PAT. PGCIL is a good defensive stock, with growth built in by the strong capitalization, which has peaked in recent years, leading to stronger cash flows. Given lower capex guidance in FY20, we trim our FY20/21 sales and earnings estimates by 4-6%.
The regulatory overhang has also passed, with the CERC retaining RoEs at 15.5%. We maintain a Buy rating, with a TP of `240, a valuation of P/BV 1.7x FY20E.
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