Add Power Grid Corporation of India, target price Rs 256 : HDFC Securities

HDFC Securities has add call on Power Grid Corporation of India with a target price of Rs 256. The current market price of Power Grid Corporation of India Ltd. is Rs 211.75.

Power Grid Corporation of India, incorporated in the year 1989, is a Large Cap company (having a market cap of Rs 147670.34 Crore) operating in Power sector.

Power Grid Corporation of India key Products/Revenue Segments include Transmission Revenue, Other Operating Revenue, Consultancy Income and Income From Telecom for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 11349.44 Crore, up 1.62 % from last quarter Total Income of Rs 11168.54 Crore and up 7.94 % from last year same quarter Total Income of Rs 10514.74 Crore. Company has reported net profit after tax of Rs 3674.53 Crore in latest quarter.

The company’s top management includes Mr.K Sreekant, Mr.Dilip Nigam, Mr.K N Onkarappa, Mr.Ram Naresh Tiwari, Mr.Chetan Bansilal Kankariya, Mr.Ravisankar Ganesan, Mr.Abhay Choudhary, Mr.Vinod Kumar Singh, Mr.Ravindra Kumar Tyagi, Mr.Mohammad Afzal. Company has T R Chadha & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 698 Crore shares outstanding.

Investment Rationale
The brokerage expects revenue/PAT to grow by 7.0%/10.5% YoY to Rs 107.1bn/INR37.0bn during Q3FY23. The company capitalised assets worth Rs 207bn in FY22 and the brokerage expect it to capitalise assets worth Rs 120bn in FY23.

Promoter/FII Holdings
Promoters held 51.34 per cent stake in the company as of 30-Sep-2022, while FIIs owned 36.84 per cent, DIIs 13.79 per cent.