{"id":277975,"date":"2019-06-11T05:56:11","date_gmt":"2019-06-11T05:56:11","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=277975"},"modified":"2019-06-11T05:56:11","modified_gmt":"2019-06-11T05:56:11","slug":"power-grid-rating-buy-healthy-traction-in-earnings-for-company","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/power-grid-rating-buy-healthy-traction-in-earnings-for-company\/","title":{"rendered":"Power Grid Rating | Buy \u2014 Healthy traction in earnings for company"},"content":{"rendered":"<p>Power Grid Corp of India\u2019s (PGCIL\u2019s) Q4FY19 PAT, adjusted for deferred tax liability, at Rs 24.6 bn came in line with estimate. Key highlights: 1) though FY19 capitalisation\/capex ratio was lower at 0.9x, we expect FY20 ratio at 1.4x led by part commercialisation of 800KV Raipur\/Pugalur line; and 2) following a sedate FY19, new project awards in FY20 are pegged at `200 bn and we expect PGCIL to win 50% of these. In the transmission sector, traction in new project awards is slow and tilted towards green energy corridor\/TBCB (tariff based competitive bidding) projects. That said, visibility on PGCIL\u2019s near-term earnings is decent. This, along with attractive valuation (9x FY20E PE) and 4.5% dividend yield, is comforting. Maintain Buy with an SoTP-based TP of `225.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Power Grid Corp of India\u2019s (PGCIL\u2019s) Q4FY19 PAT, adjusted for deferred tax liability, at Rs 24.6 bn came in line with estimate. Key highlights: 1) though FY19 capitalisation\/capex ratio was lower at 0.9x, we expect FY20 ratio at 1.4x led by part commercialisation of 800KV Raipur\/Pugalur line; and 2) following a sedate FY19, new project awards in FY20 are pegged at `200 bn and we expect PGCIL to win 50% of these. In the transmission sector, traction in new project awards is slow and tilted towards green energy corridor\/TBCB (tariff based competitive bidding) projects. That said, visibility on PGCIL\u2019s near-term [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-277975","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=277975"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277975\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=277975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=277975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=277975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}