Buy Maharatna PSU As Management Bullish Of Upstick Until FY27, TP Rs 390: Jefferies

Leading brokerage from Jefferies appears upbeat on leading Maharatna PSU Power Grid Corporation Of India and recommended buy with target price of Rs 390 per share. Current market price of Power Grid Corporation Of India shares on BSE is Rs 338.80 per share. Power Grid shares slipped 4.35% in last 1-week but gave rich returns of 206% in last 5-years. The PSU offers a stunning 3.32% dividend yield and recommended a total of 39 dividends since 2008. Check details below:

Power Grid Corporation Dividend In 2024: The exchange filing of Power Grid dated 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 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. The ex-dividend date was August 16, 2024.

Power Grid Corporation Share Performance & Return: 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 193.80 per share (as on 09/10/2023), respectively. Power Grid Corporation has a market capitalisation of Rs 3,15,104.46 crore. Power Grid Corporation shares zoomed 43% year-to-date, rallied 70% in last 1-year, and soared 116% in last 2-years span.

Power Grid Corporation Shares Get Buy Call: According to Jefferies, management maintained its fy25 capex guidance & remains confident of uptick until FY27. 1 lakh crore bids are in tendering stages, which is up 1.8x yoy, & gives visibility on growth ahead. The analyst believes 12,700 crore order & is being re-tendered will see only marginal impact on guidance. Potential stock upside drivers ahead are the visible bid pipeline and higher dividend payout, added the analyst.

On the other hand, Motilal Oswal suggested buying Power Grid shares for target price of Rs 425 per share.

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.

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

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 Jefferies and Motilal Oswal. 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.