Dividend Rs 2.75/Share: Buy Maharatna Power PSU For TP Rs 345, YTD Return 34.57: CLSA

Leading brokerage firm CLSA has issued buy call to Maharatna Power sector PSU Power Grid Corporation Of India shares with target price of Rs 345 per share. The analyst has given outperform call saying "capex beat estimates, capitalisation missed but good fy25 guidance." Current market price of Power Grid Corporation share on BSE is Rs 320.20 per share. Board of Directors of Power Grid Corporation recommended a final dividend of Rs 2.75/- per share for the financial year 2023-24. The company also approved fundraising of Rs 5000 crore. Earlier, the PSU on April 17 approved fundraise of upto Rs 12,000 crore. More details below:

Power Grid Recommends Final Dividend: As per the BSE filing of Power Grid dated May 22, "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 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. The final dividend would be paid within 30 days from the date of its declaration at the AGM. This final dividend is in addition to the 1st Interim Dividend of Rs. 4.00/- per share i.e. @ 40% on the paid-up equity share capital paid on 6th December, 2023 and 2nd Interim Dividend of Rs. 4.50/- per share (i.e. @ 45% on the paid-up equity share capital) paid on 5th March, 2024 for the Financial Year 2023-24."

Power Grid Corporation Q4: The company on May 22 declared a decline of 3.5% in its consolidated net profit at Rs 4,137.21 crore for the quarter ended May 31, 2024 as compared to Rs 4,288.11 crore reported in the corresponding quarter of last year. The maharatna PSU's revenue from operations declared at Rs 11,978.11 crore,down 2.5% as compared to Rs 12,285.6 core in the similar quarter of last year. Its EBITDA slipped by 6% to Rs 10,488 crore for the quarter under review as against Rs 11,149.97 crore in the similar quarter of last year. EBITDA margin stood at 87.59% for the quarter under review as compared to 90.76% in the same quarter of last fiscal.

Power Grid Corporation Share Performance & Return: The 52-week high price of Power Grid Corporation shares on BSE is Rs 328.35 per share (as on 22/05/2024) and 52-week low price is Rs 172.54 per share (as on 31/05/2023), respectively. Power Grid Corporation shares gave return of 51.96% in last 6-months, gave return of 80% in last 1-year, offered return of 90% in last 2-years, and jumped 149% in last 3-years. In last 5-years, Power Grid Corporation shares surged 204%.

Power Grid Corporation Bonus Share History: The PSU declared 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 Dividend History: Power Grid Corporation of India announced 38 dividends since March 10, 2008. In last 1-year, Power Grid Corporation of India announced an equity dividend amounting to Rs 13.25 per share. At the current share price of Rs 320.20 per share, Power Grid Corporation of India offers a dividend yield of 4.15%. Adjusting for Bonus/Splits the dividend yield is 3.78%.

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 CLSA. 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.