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Strong capex pipeline, easing execution issues could set the stage for earnings recovery in the second half of current fiscal
With projects worth Rs 1 lakh crore expected to be awarded annually, Power Grid is well-positioned to benefit from these developments
Power Grid Corporation is expected to report a 1.3 percent decline in revenue compared with the same quarter of the previous year, to around Rs 11,386 crore, going by the average of a poll of five brokerages.
The poor financial performance in Q2FY25 was caused by one-off issues. The strong capex plan, huge orders in hand, and a robust pipeline of T&D projects signal brighter days ahead
While the stock has performed quite well in the recent past, it is still a good candidate to ride the growth in domestic capex.
Many brokerages are optimistic about Power Grid due to transmission opportunities, though Nuvama highlights risks such as a slower order book and increased competition from competitive bidding.
Analysts anticipate a muted quarter for Power Grid despite optimism in the power segment. Capacity woes, high costs may mean a missed market for the PSU.
A planned increase in capex provides earnings visibility