Motilal Oswal's research report on Power GridPGCIL reported 3QFY16 revenue of INR53.6b (up 23% YoY), in line with estimate of INR53b. EBIDTA was marginally higher at INR47.5b v/s estimate of INR46b, up 27% YoY. Core performance was driven by transmission division EBIT at INR31.4b, up 30% YoY. Reported PAT was INR16.1b, up 29% YoY and higher than our estimate of INR15b; the deviation was broadly led by higher contribution from telecom, consultancy and transmission divisions (driven by higher capitalization compared with estimate). We raise our FY16/17 estimates to factor in higher capitalization.We expect PWGR to report PAT of INR61.2b (up 20% YoY) in FY16 and INR72.6b in FY17 (up 19% YoY). The stock trades at PER of 10x and P/B of 1.5x on FY17E basis. DCF-based TP of INR178/sh. Maintain Buy. For all recommendations, 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.
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