Moneycontrol Be a Pro
Get App
Last Updated : Jun 18, 2019 12:03 PM IST | Source: Moneycontrol.com

Hold Powergrid; target of Rs 210: ICICI Direct

ICICI Direct recommended hold rating on Powergrid with a target price of Rs 210 in its research report dated May 30, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on Powergrid


Powergrid reported Q4FY19 results that were a mixed bag as revenues and EBITDA were in line with estimates. However, capitalisation booked in Q4FY19 was below expectations. PAT looks optically ahead of estimates given there was one-off adjustment for FY19 booked during the quarter. Going ahead, the management commentary suggests reasonable moderation in the capex and capitalisation trend. We believe this will put the brakes on PAT growth. We now anticipate 7% PAT CAGR in FY19-21E vs. PAT CAGR of 22% witnessed during FY15-18.


Outlook


Moderation across future capex, rising share of competitively bid projects will impact the earnings performance and investment multiple that the company used to enjoy over the last years. We now forecast 7% PAT CAGR over FY19-21E and cut our P/B multiple at 1.3x FY21E BV. We have a fair value of Rs 210 per 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.




The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jun 18, 2019 12:03 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant