Power Generation & Distribution · PWGR
Power - Transmission/Equipment
from 271 today
Powergrid remains the premier proxy on India's structural transmission capex upcycle, supported by a strong order book and consistent execution momentum. We upgrade our rating to BUY with a revised target price of Rs. 303.
Power Grid has started FY27 broadly in line with its full-year execution targets, keeping it on track for unchanged guidance. We remain constructive on the multi-year transmission capex upcycle, with PWGR firmly at its centre.
We reiterate our Neutral rating and derive our TP of INR302 based on FY28 BVPS and a P/B multiple of 2.5x.
Execution impressed with tripled capitalisation and rising capex, though routine tariff-cycle movements kept reported PAT flat. We roll forward to 1HFY29 and maintain HOLD with a lower target price of INR 308.
Post results, we have marginally cut our FY27E/28E EPS estimates by 1%, factoring in lower ROE from TBCB projects, and revised our TP to INR331 (2.7x FY28 BV). We retain our BUY rating. The stock offers an attractive dividend yield of ~4%.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
