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ICICI Securities Report
Power Grid Corporation of India Ltd. is winning new projects in new bids for transmission assets than its earlier track record would suggest. It won 69% of new projects (based on quoted tariff). The total cost of these new projects based on our estimate is ~ Rs 400 billion.
Also, it received new projects worth Rs 130 billion to build transmission. Overall, the cumulative worth of new projects is Rs 0.5 trillion and overall project under implementation is Rs 1 trillion.
Note that Power Grid won Rs 300 billion worth of new transmission assets in FY24. During the quarter, it reported consolidated adjusted profit of Rs 37 billion, growth of 4% YoY – due to muted commissioning of Rs 76 billion (versus asset of Rs 3.7 trillion) in the preceding four quarters.
We maintain 'Add' with a revised target price of Rs 375 (earlier Rs 345) based on 20 times FY26E earning per share of Rs 19.
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