Buy Maharatna CPSE For TP Rs 425, Latest Update On South Olpad Acquisition Issued

Maharatna Power sector PSU Power Grid Corporation Of India shares slipped nearly 6% in last 2-weeks. Last trading price of Power Grid Corporation Of India shares on BSE stood at Rs 329.65 per share. The company today gave update on acquisition of South Olpad Transmission Limited. Power Grid Corporation shares gave return of 63% in last 1-year and 107% in last 2-years. The company's market capitalisation stood at Rs 3,06,594.40 crore. The PE of Power Grid Corporation is 19.98 and ROE is 17.66. Check details below:

Power Grid Corporation Gives Update On Acquisition: As per October 15, 2024, "Power Grid Corporation of India Limited, pursuant to its selection as the successful bidder under Tariff based competitive bidding, has on 15.10.2024 acquired South Olpad Transmission Limited, the Project SPV to establish "Transmission System for Evacuation of Power from potential renewable energy zone in Khavda area of Gujarat under Phase-IV (7GW): Part B", on build, own, operate and transfer (BOOT) basis from the Bid Process Coordinator - PFC Consulting Limited."

The project comprises establishment of new 765/400/220 kV (GIS) sub-station at a suitable location near south of Olpad, 765kV & 400kV D/C Transmission Lines and associated bays extension works at other existing substation in the state of Gujarat, added the exchange filing.

Power Grid Corporation Emerged Successful Bidder Under TBCB: The company on October 10 declared as the successful bidder under Tariff based competitive bidding to establish Inter-State transmission system for the project namely "Transmission system for evacuation of power from Rajasthan REZ Ph -IV (Part-2: 5.5 GW) (Jaisalmer/Barmer Complex): Part F (By clubbing Part F1 & F2)" on build, own, operate and transfer (BOOT) basis. It received Letter of Intent (LoI) on October 9, 2024.

Power Grid Corporation Shares Performance: The 52-week high price of Power Grid shares on BSE is Rs 366.20 per share (as on 25/09/2024) and 52-week low price is Rs 196.20 per share (as on 26/10/2023), respectively. Power Grid Corporation shares zoomed 20% in last 6-months, soared 39% so far this year, gained 114% in last 3-years, and offered return of 191% in last 5-years.

Power Grid Corporation Dividend: The company on May 22 stated, "recommended a final dividend of Rs. 2.75/- per share (i.e. @ 27.5% on the paid-up equity share capital) for the Financial Year 2023-24.

Power Grid Corporation Dividend History: Power Grid Corporation announced 39 dividends since March 10, 2008. In last 1-year, Power Grid Corporation announced an equity dividend amounting to Rs 11.25 per share. At the current share price of Rs 329.65, Power Grid Corporation of India Ltd offers a dividend yield of 3.41%.

Buy Call: Two brokerage firms have recommended buy call to Power Grid Corporation shares. Jefferies recommended buy call to Power Grid Corporation shares with target price of Rs 390 per share. Presently, Rs 1 lakh crore worth of bids are in the tendering stages, up 1.8x year-on-year, offering robust visibility on future growth, according to the brokerage.

The re-tendering of a Rs 12,700 crore order is expected to have only a minor impact on the company's overall guidance. Key drivers for potential stock upside include the robust bid pipeline and the prospect of higher dividend payouts, added Jefferies.

Meanwhile, Motilal Oswal too assigned buy call with target price of Rs 425.

Power Grid Shareholding: FII/FPI have decreased holdings from 29.82% to 28.73% in Jun 2024 qtr. Number of FII/FPI investors increased from 1388 to 1438 in Jun 2024 qtr. Mutual Funds have increased holdings from 10.91% to 11.61% in Jun 2024 qtr. Number of MF schemes increased from 38 to 39 in Jun 2024 qtr. Institutional Investors have decreased holdings from 45.09% to 45.06% in Jun 2024 qtr. LIC has 2.30% stake in Power Grid, according to Trendlyne.

Power Grid Corporation Bonus Share History: It announced 2 bonus issues since July 29, 2021. The PSU's last bonus issue was declared in the ratio of 1:3 with ex-bonus date was set as September 12, 2023.

Power Grid Corporation About: Power Grid Corporation of India Limited is a Schedule 'A', 'Maharatna' Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Company Act, 1956. POWERGRID, one among the largest power transmission utilities in the world, has developed expertise in its core areas such as power transmission, sub-transmission system, distribution management, load dispatch & communications, in India and abroad, as per its official website.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Jefferies. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.