Power Grid Corporation of India Ltd., incorporated in the year 1989, is a Large Cap company (having a market cap of Rs 120666.62 Crore) operating in Power sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 10816.33 Crore, up 4.41 % from last quarter Total Income of Rs 10359.48 Crore and up 2.94 % from last year same quarter Total Income of Rs 10507.65 Crore. Company reported net profit after tax of Rs 3471.99 Crore in latest quarter.
Investment Rationale
It bagged INR90-100b in awards in recent months, which is a positive sign, given a declining order book. Nevertheless, the capex trajectory is on a decline. With proceeds from InvIT, the brokerage sees strong scope for higher dividends. Valuations at 1.6x FY22E P/BV and 7-8% dividend yield remains attractive for a company with steady RoEs of 17-18%
Promoter/FII Holdings
Promoters held 51.3 per cent stake in the company as of March 31, 2021, while FIIs held 28.4 per cent, DIIs 13.8 and public and others 6.5 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
