Power Grid Corporation of India Ltd. (PGCIL) is a ‘Maharatna’ status public sector company (PSU) under the Ministry of Power, Government of India. The government holds a 51.34% stake in this CPSU which is engaged in the business of power transmission.
It is the largest electric power transmission utility in India with a transmission network of 1,73,815 ckm, 271 sub-stations, and a transformation capacity of 4,93,862.7 MVA. It is a large-cap stock with a market value of Rs 1,55,000 crore.
Recently, Power Grid Corp. acquired project SPV Khavda RE Transmission (KRTL) from REC Power Development and Consultancy. It is one of the six special purpose vehicles (SPV) projects handed over to the company by Rural Electrification Corporation Power Development and Consultancy Limited (RECPDCL).
The project involves the expansion of the transmission network in Gujarat along with the integration of RE works from Khavda potential RE zone via the build, own, operate and transfer (BOOT) method.
The statement released by RECPDCL read, “Power Grid Corporation of India Limited (PGCIL) was the successful bidder for all of the 6 Projects of the Ministry of Power, Government of India and RECPDCL was the Bid Process Coordinator.”
The other projects are KPS3 Transmission (KPS3TL) to set up Khavda Pooling Station-3 (KPS3) in Khavda RE Park; KPS2 Transmission (KPS2TL) to install Khavda Pooling Station-2 (KPS2) in Khavda RE Park; and Khavda II-C Transmission (KCTL) to form a transmission scheme for evacuation of 4.5GW RE injection at Khavda PS under Phase II- Part C.
All these projects have been won by PGCIL through tariff-based competitive bidding on a BOOT basis.
For the quarter that ended December 2022 (Q3FY23), the sales of the company increased by 7.8% to Rs 11,262 crore from Rs 10,447 crore during the same period last year (Q3FY22). At the same time, the net profit grew by 10.7% from Rs 3,293 crore in Q3FY22 to Rs 3,645 crore in Q3FY23.
Multiple brokerages have initiated coverage on Power Grid Corporation of India. Among them, analysts at JM Financial have provided a ‘buy’ rating on the stock with a target price of Rs 255 per share. This translates to a potential 15% upside from Thursday’s closing price of Rs 222.25.
Written by Vikalp Mishra
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
