Power Grid Corporation - 3QFY17 Result Update - Higher Capitalization Continues to Drive Growth - Reliance Securities

At CMP, the stock currently trades at 2.2x FY17E & 1.9x FY18E P/BV, respectively and 14.2x P/E of FY17E & 12.0x P/E of FY18E. Given higher capitalization in coming years on the back of huge capex in the pipeline, and steady regulated RoE, we believe that PGCIL's fundamentals would continue to remain strong supported by least exposure to operational risks i.e. fuel and SEBs' weak financials. Hence, continuing to remain positive on PGCIL, we reiterate our BUY recommendation on the stock with a revised Target Price of Rs225.

Shares of POWER GRID CORPORATION OF INDIA LTD. was last trading in BSE at Rs.200.8 as compared to the previous close of Rs. 201.25. The total number of shares traded during the day was 79607 in over 731 trades.

The stock hit an intraday high of Rs. 202.35 and intraday low of 199.2. The net turnover during the day was Rs. 15981101.

Source : Equity Bulls

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