Views on Power Grid 4QFY2015 Results - Angel Broking

Views of Mr. Rahul Dholam (Sr. Research Analyst - Power, Angel Broking) on Power Grid 4QFY2015 Results:

"Power Grid 4QFY2015 total revenues increased 18% yoy to INR 4,703cr, in-line with our estimate of INR 4,689cr. Transmission revenues however came in 1.4% below our estimate at INR 4426cr, increasing 20% yoy. Other revenues (Consultancy, telecom and other operating revenue) came in higher at INR 277cr as against our estimate of INR 225 cr. Transmission expenses came in slightly higher at 8.8% of revenues as against our expectation of 8% leading to an EBITDA margin of 85.2%, 70bp below our estimate of 85.9%. Net profit at INR 1363cr was also in-line with our estimate of INR 1396cr. Although the capex and capitalisation figures are awaited, the net fixed asset figure is ahead of our estimate indicating that capex during the quarter was higher than our estimate of INR 5842cr. We retain our BUY recommendation on the stock and value it at ~1.9x FY2017E Adjusted BV to arrive at our target price of INR 170."

Shares of POWER GRID CORPORATION OF INDIA LTD. was last trading in BSE at Rs.145.05 as compared to the previous close of Rs. 144.3. The total number of shares traded during the day was 232148 in over 1868 trades.

The stock hit an intraday high of Rs. 146.25 and intraday low of 143. The net turnover during the day was Rs. 33708130.

Source : Equity Bulls

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