Moneycontrol PRO
UPCOMING EVENT:Watch leaders discuss the biggest issue of our times at the Sustainability 100+ Summit. Register now!

Buy Power Grid; target of Rs 222: Motilal Oswal

Motilal Oswal is bullish on Power Grid has recommended buy rating on the stock with a target price of Rs 222 in its research report dated June 22, 2020.

June 23, 2020 / 06:55 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal 's research report on Power Grid


Power Grid's (PWGR) 4QFY20 results highlight steady performance in the Transmission segment. Adj. PAT increased 7% YoY even as Consultancy/ Telecom EBIT declined 7%/4% YoY. FY20 capitalization stood at INR182b given the delay in commissioning of Raigarh-Pugalur. INR230b worth awards are up for bidding under various schemes; however, we expect some delays. In this context, a declining order book does put a risk of slowdown in growth.



Outlook


However, valuations at 1.3x FY22E P/BV and ~8-9% FY22E dividend yield remain attractive for a company with steady RoEs of ~17%. Maintain Buy with a 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 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.

Broker Research
first published: Jun 23, 2020 06:55 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark