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Buy Power Grid; target of Rs 222: Motilal Oswal

Motilal Oswal is bullish on Power Grid recommended buy rating on the stock with a target price of Rs 222 in its research report dated November 12, 2020.

November 15, 2020 / 11:57 AM IST
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Motilal Oswal 's research report on Power Grid

Power Grid’s (PWGR) 2QFY21 results highlight the strong underlying numbers in its transmission segment, implying ~16% YoY growth. Reported S/A PAT rose 23% YoY, further aided by higher other income. INR180b of awards are to be bid under various schemes; however, we are expecting some delays. In this context, a declining order book does put a risk of growth slowing down. However, valuations at 1.3x FY22E P/BV and ~7-8% FY22E dividend yield remain attractive for a company with steady RoEs of ~17%. Maintain Buy with DCF-based TP of INR222/share.


Valuations at 1.3x FY22E P/BV remain attractive for a company with steady RoEs of ~17% and does not capture any growth potential (EPS FY20-23E: 7% CAGR). Maintain Buy with DCF-based TP of INR222/share.

For all recommendations report, click here

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

Broker Research
first published: Nov 15, 2020 11:57 am

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