Rs 2.75/Share Dividend: Maharatna PSU Issues Key Update On Project, Buy For Rs 345 TP

Maharatna Power sector PSU Power Grid Corporation Of India share gained 2.07% in trade today to settle at Rs 315.7 5 per share. Power Grid Corporation Of India shares gave return of 72% in last 1-year and soared 33% year-to-date. Today, Power Grid Corporation Of India issued an update pertaining to commissioning of a project. The Maharatna PSU has a market capitalisation of Rs 2,93,666.57 crore. Earlier this year on May 22, 2024 Power Grid Corporation recommended a final dividend of Rs 2.75/- per share for the FY 2023-24.

Power Grid Corporation gave approval to fundraising of Rs 5000 crore. Meanwhile, FII/FPI reduced holdings from 30.51% to 29.82% in March 2024 quarter. Number of FII/FPI investors jumped from 1361 to 1388 in March 2024 quarter. Meanwhile, mutual funds increased holdings from 10.52% to 10.91% in March 2024 quarter. It is worth mentioning that Government Of Singapore has 2.82% stake in Power Grid. Check key details below:

Power Grid Corporation Issues Update On Commissioning Project: As per the regulatory filing of Power Grid issued as On June 10, 2024, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that project under "Reliable Communication Scheme under Central Sector for Northern Region" has been commissioned with effect from 01st April, 2024 for which Notification for Commercial Operation (DOCO) has been received on 10th June, 2024."

Power Grid Announces Acquisition Update: According to BSE filing, Power Grid has acquired Khavda IV-E2 Power Transmission Limited for the "Transmission System Project for Evacuation of Power from Potential Renewable Energy Zone in Khavda Area of Gujarat under Phase-IV (7GW) Part E2" after competing with various private sector players and emerging as successful bidder in tariff-based competitive bidding (TBCB) process." According to the company, Khavda IV-E2 Power Transmission Limited shall implement augmentation works at existing substation namely Khavda Pooling Station -2 in the state of Gujarat.

Power Grid Recommended Dividend: As per the regulatory filing of Power Grid issued as on 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 PSU on May 22, 2024 declared a decline of 3.5% in consolidated net profit at Rs 4,137.21 crore for the quarter ended March 31, 2024 as against Rs 4,288.11 crore reported in the similar quarter of last year. The PSU announced a fall of 2.5% in its revenue from operations at Rs 11,978.11 crore as compared to Rs 12,285.6 core in the similar quarter of last year. Power Grid's EBITDA slipped by 6% to Rs 10,488 crore for March 2024 quarter as against Rs 11,149.97 crore in the corresponding quarter of last year. EBITDA margin declared at 87.59% for the quarter under consideration as against 90.76% in the similar quarter of last fiscal.

Power Grid Corporation Share Performance & Return: 52-week high price of Power Grid shares on BSE is Rs 346.90 per share (as on 03/06/2024) and 52-week low price is Rs 177.60 per share (as on 14/07/2023), respectively. Power Grid Corporation's market cap stood at Rs 2,93,666.57 crore. Power Grid Corporation shares slipped over 6% in last 1-week, jumped 88% in last 2-years, and offered return of 132% in last 3-years.

Should You Buy Power Grid Corporation Share? CLSA has recommended buy for Power Grid Corporation share with target price of Rs 345 per share. CLSA gave outperform call commenting "capex beat estimates, capitalisation missed but good fy25 guidance."

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 Dividend History: Power Grid Corporation of India declared a total of 38 dividends since March 10, 2008. In last 1-year, Power Grid declared an equity dividend amounting to Rs 13.25 per share. At the current share price of Rs 320.20 per share, Power Grid offers a dividend yield of 4.20%. Adjusting for Bonus/Splits the dividend yield is 3.82%.

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.