Reiterate 'buy' on Power Grid - TP hiked to Rs. 142 - Geojit BNP Paribas

- Buy rating on Power Grid Corporation is reiterated with a 5% increase in target price to Rs.142.

- EPS estimates for FY13 and FY14 have been increased by 11.4% and 7.5% respectively to factor in better execution and this is expected to bring EPS growth of 17.6% over FY13-17 as against the earlier estimate of 15%.

- The company is expected to complete power transmission projects worth Rs.180 billion in FY13 against the earlier expectation of Rs.155 billion, Rs.190 billion worth of projects in FY14 against the earlier anticipation of Rs.170 billion and Rs.190 billion worth of projects in FY15 against the earlier expectation of Rs.167 billion.

- Given its strong execution, the company is expected to achieve its targeted capex of Rs.200 billion per annum without the need to raise fresh equity.

Source : Equity Bulls

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