Power Grid Q1 Review - Steady Growth In Underlying Transmission Numbers: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Power Grid Corporation of India Ltd.’s Q1 FY22 result highlights the steady growth in its transmission business, with underlying numbers increasing 12% YoY.
Reported standalone profit after tax rose three times YoY, led by gains on sale of assets to the infrastructure investment trust.
Power Grid has won Rs 90-100 billion of awards during the past eight to nine months, which is a positive sign, given a declining order book.
The capex trajectory is on a decline, and with proceeds from InvIT, we see strong scope for higher dividends.
Valuations at 1.6 times FY22E price/book value and a 7-8% FY22E dividend yield remain attractive for a company with a steady return on equity of 18%.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.