Maintain 'buy' on Power Grid - TP Rs.122 - Geojit BNP Paribas Financial Services Limited

- Buy rating on Power Grid Corporation is maintained with a target price of Rs.122 over one year.

- Company's adjusted sales of Rs.2640 crore for 4QFY12 is better than market expectations.

- Adjusted EBITDA of Rs.2140 crore is also in line with market estimates.

- Recurring PBT of Rs.1194 crore is also in line with the market expectations.

- However, PAT of Rs.750 crore missed market estimates, but this is only due to higher than expected deferred taxes.

- Company has completed power transmission projects worth Rs.6570 crore in 4QFY12 and it is higher than market estimates.

- For the whole of FY12, the company has completed projects worth Rs.13000 crore. This figure is also higher than market estimates and this will lead to slight upside for FY13 estimates.

- Considering execution numbers for FY12, the EPS miss in 4QFY12 does not appear a concern and the target price is maintained at Rs.122 over one year.

Source : Equity Bulls

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