• Power Grid’s 3QFY20 results highlight the company’s strong performance in the transmission segment, with adj. PAT increasing 13% YoY.

• The company is targeting capitalization of INR200-250b in F20, it depends on commissioning of the Raigarh-Pugalur project. According to the company, much of the Right of Way (RoW) issues faced have been resolved and would be fully completed in FY20.

• With declining capex and removal of DDT, the company noted there is a likelihood of increasing dividends.

• While declining order book and capitalization schedule does put risk of a slowdown in growth, valuations at 1.3x FY22 P/BV and 7% dividend yield looks attractive for a company with steady RoE of 17%.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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