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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
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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.


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 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: Jun 23, 2020 06:55 pm

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