PGCI Q3FY18: EBITDA jumped 15% YoY; Buy

Suhani Adilabadkar | March 5, 2018, 4:19 p.m.

Power Grid Corporation of India  transmits more than 45%  of  power  generated  in  India.  Though  major  revenue  driver  is transmission  business,  company  is  leveraging  its  electricity  network  topology  to  form  optic  fiber  network  for  long distance  telecommunication  network.  Power  Grid Corporation  Of  India  has  further  diversified  its  revenue basket  by  providing  consultancy  services  to  State  owned Utilities, private utilities, government departments etc.  In the present scenario with government reforms giving huge fillip to  power  &  infrastructure,  Electric  Utilities  sector  stands  to gain  in  the  long  run.  We  recommend  BUY  for  the  stock  for medium & long term investment with PE multiple of  12.08  x  FY18E & 10.74 x FY19E with a target price of Rs. 285.

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