INSUBCONTINENT EXCLUSIVE:
Reliance Securities has a buy call on Power Grid Corporation of India with a target price of Rs 256.
The current market price of Power Grid
Corporation of India is Rs 189.60.
Time period given by the brokerage is one year when Power Grid Corporation of India price can reach the
Outlook Valuation by Reliance Securities:Looking ahead, we expect PGCIL’s earnings to clock 19 per cent CAGR over FY18-20 backed by a
At CMP, the stock trades at 1.6x FY19E 1.4x FY20E P/BV, respectively and 10.2x P/E of FY19E 8.5x P/E of FY20E
Given higher capitalisation in coming years on the back of huge capex pipeline, steady regulated RoE, we believe that PGCIL’s fundamentals
would continue to remain strong
New project awards and pending CERC 2014-19 transmission tariff norms are the key monitorables in the near-term
We maintain our BUY recommendation on the stock with an unrevised Target Price of Rs256.
