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View Full Version : Power Grid Corporation of India Limited (NSE:POWERGRID) (BSE:532898)



SMR
05-07-2015, 05:44 PM
Power Grid Corporation of India Limited (POWERGRID) is an India-based company, engaged in construction, operation and maintenance of inter-state transmission system (ISTS). The company’s principal business is transmission of bulk power across different States of India. The Company’s business also includes telecom and consultancy services. The Company’s telecom business engaged in the POWERGRID’s transmission infrastructure across the country. The Company’s consultancy services provides engineering, procurement and construction within and outside India, in the field of electrical power transmission and distribution to governments and other utilities, including in the field of energy efficiency, smart grid and training.

Official website: www.powergridindia.com

SMR
06-04-2015, 07:41 AM
Revenue and earnings growth in-line with estimate Power Grid Corporation of India (PGCIL) reported a healthy 19.6% yoy increase in transmission revenues at Rs4,426cr, marginally below our estimate of Rs4,487cr. Consultancy revenues from services increased 6% yoy to Rs157cr, well ahead of our estimate of Rs133cr. Telecom revenues too were ~15% ahead of our estimate at Rs79cr. The increase in consultancy and telecom income more than offset the lower than expected transmission revenues, resulting in total operating income of Rs4,703cr, 0.3% higher than our estimate of Rs4,689cr. EBITDA margin increased 140bp yoy to 86.3% led by higher income from consultancy and telecom. Net profit increased ~20% yoy to Rs1,412cr vs our estimate of Rs1,378cr. Capitalisation below expectations, capex guidance maintained 4QFY2015 capitalisation came in lower than expected at Rs4,986cr, vs our estimate of Rs6,383cr. This was largely on account of delay in the commissioning of certain projects, which would be capitalized in 1QFY2016. PGCIL incurred a capex of ~Rs22,456cr in FY2015 in line with its target of Rs22,500cr. The company has guided for ~Rs45,000cr capex (Rs22,500cr in FY2016 and Rs22,550cr in FY2017) over the next two years. The current capital work in progress (CWIP) stands at ~Rs56,576cr. With total outlay upwards of Rs1,00,000cr, capitalisation is expected to remain healthy, providing strong earnings visibility. Outlook and valuation Led by strong capex plans and a healthy capitalisation rate, we expect PGCIL to report a revenue and EBITDA CAGR of ~15%. At the current market price of Rs143, the stock trades at a P/B of 1.8x and 1.6x its FY2016E and FY2017E BV of Rs81.5 and Rs91.2, respectively. We remain positive on the stock with a target price of `170, based on ~1.85x FY2017E book value, implying an 18% upside from the current levels. Maintain Buy.

Source: http://www.angelbroking.com

SMR
08-13-2015, 07:14 AM
Revenue and earnings growth in-line with estimates Power Grid Corporation of India (PGCIL) reported a healthy 19.1% yoy increase in Transmission revenue to Rs4,614cr, still, marginally below our estimate of Rs4,540cr. Consultancy revenues from services once again surprised positively, increasing by 46% yoy to `89cr, well ahead of our estimate of Rs66cr. Telecom revenues too were ~30% ahead of our estimate at Rs88cr. The increase in Consultancy and Telecom income partially offset the lower than expected Transmission revenues, resulting in total operating income of Rs4,718cr, being just 0.7% lower than our estimate of Rs4,750cr. The EBITDA margin increased 133bp yoy to 87.7%, led by higher Consultancy and Telecom income. The net profit increased ~20% yoy to Rs1,367cr, vs our estimate of Rs1,400cr. Capitalisation marginally lower, capex guidance maintained 1QFY2016 capitalisation was marginally lower at Rs4,547cr, vs our estimate of Rs4,746cr. This was largely on account of spill-over in the commissioning of certain projects to 2QFY2016. However, some of these projects have now been executed and the capitalisation till date stands at ~Rs7,000cr already. Capex incurred during the quarter also remained healthy at Rs6,412cr (28.5% of its annual target; Rs8,080cr till date). Consequently, we expect capitalisation to remain healthy in 2QFY2016. Outlook and valuation Led by strong capex plans and a healthy capitalisation rate, we expect PGCIL to report a revenue and EBITDA CAGR of ~17% over FY2015-17E. At the current market price of Rs138, the stock trades at a P/B of 1.7x and 1.5x its FY2016E and FY2017E BV of Rs82 and Rs92, respectively. We maintain our target price of Rs170, based on ~1.85x FY2017E BV, implying an 18% upside from the current levels and reiterate our Buy rating on the stock.

Source: http://www.angelbroking.com/