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Power Grid Q1 Review - Steady Growth In Underlying Transmission Numbers: Motilal Oswal

Power Grid Q1 Review - Steady Growth In Underlying Transmission Numbers: Motilal Oswal

Power lines hang from a transmission tower. (Photographer Carla Gottgens Bloomberg)
Power lines hang from a transmission tower. (Photographer Carla Gottgens Bloomberg)

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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:

Motilal Oswal Power Grid Q1FY22 Result Update.pdf

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