On 22nd June, the Government of India approved new Inter State Transmission System (ISTS) schemes worth Rs. 13,595 crore to evacuate a total of 9 GW of renewable energy (RE) power from Rajasthan and Karnataka.
These initiatives form a crucial part of the nation’s goal to achieve 500 GW of RE capacity by 2030, with 200 GW already connected. The projects will be executed through the Tariff Based Competitive Bidding (TBCB) mode.
Specifically, the power evacuation scheme for the Rajasthan Renewable Energy Zone (REZ) aims to evacuate 4.5 GW of RE power from Rajasthan. This includes 1 GW from Fatehgarh Complex, 2.5 GW from Barmer Complex, and 1 GW from Nagaur (Merta) Complex.
This power will be transferred to Mainpuri Region, Fatehpur and Orai of Uttar Pradesh. The scheme is scheduled to be completed within two years, and the cost of the scheme is about Rs. 12,241 crore.
In Karnataka, the System strengthening scheme aims to evacuate 4.5 GW of RE from the Koppal and Gadag areas. This project is scheduled for completion by June 2027, with the cost of the scheme being about Rs. 1,354 crore.
On June 18th, the Ministry of Power announced its proactive measures to ensure sufficient power supply during the heightened summer demand. Notably, the northern region successfully met its highest-ever peak demand of 89 GW on June 17th.
Here are a few companies engaged in electrical power transmission that can benefit from these schemes:
Power Grid Corporation of India Limited
In Tuesday’s morning trading session, the share price of India’s largest power transmission company surged 0.6 percent on BSE to Rs. 335, as against its previous closing price of Rs. 333.05.
With a market cap of Rs. 3.09 lakh crore, the stock has delivered positive returns of nearly 79.07 percent in one year and about 40.3 percent year-to-date.
In terms of financials, the company reported a decline in revenue from operations by 2.3 percent YoY from Rs. 12,263 crore in Q4 FY23-24 to Rs.
11,978 crore in Q4 FY23-24, while its after-tax profit fell by 3.6 percent from Rs. 4,322.87 crore to Rs. 4,166.33 crore, during the same period.
Power Grid Corporation of India Limited is principally engaged in the implementation, operation and maintenance of Inter-State Transmission System (ISTS), Telecom and consultancy services.
Adani Energy Solutions Limited (AESL)
In Tuesday’s morning trading session, the share price of India’s largest private transmission and distribution company surged 0.25 percent on BSE to Rs. 1,019.4, as against its previous closing price of Rs. 1,016.8.
With a market cap of Rs. 1.13 lakh crore, AESL has delivered positive returns of about 31.8 percent in one year, but nearly 3.7 percent of negative returns year-to-date.
In terms of financials, the company reported a growth in revenue from operations by 48.04 percent YoY from Rs. 3,179.3 crore in Q4 FY23-24 to Rs. 4,706.85 crore in Q4 FY23-24, while its after-tax profit fell by 13.3 percent from Rs. 440 crore to Rs. 381.3 crore, during the same period.
Adani Energy Solutions Limited (AESL), a part of the Adani portfolio, is a multidimensional organisation with a presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions.
KEC International Limited
In Tuesday’s morning trading session, the share price of a global infrastructure EPC major surged 0.3 percent on BSE to Rs. 878.35, as against its previous closing price of Rs. 875.85.
With a market cap of Rs. 22,512 crore, the stock has delivered positive returns of nearly 58.7 percent in the last one year and about 44.7 percent year-to-date.
In terms of financials, the revenue from operations stood at Rs. 6,165 crore in Q4 FY23-24, rising by 11.6 percent YoY from Rs. 5,525 crore in Q4 FY22-23, and the net profit grew by 111.11 percent YoY to Rs. 152.75 crore from Rs. 72.2 crore, during the same period.
KEC International Limited is a global infrastructure Engineering, Procurement and Construction (EPC) major, with a presence in the verticals of Power Transmission and Distribution, railways, civil, urban infrastructure, solar, oil & gas pipelines, and cables.
Kalpataru Projects International Limited
In Tuesday’s morning trading session, the share price of a leading global infrastructure EPC company surged nearly 3.4 percent on BSE to Rs. 1,213.3, as against its previous closing price of Rs. 1,173.15.
With a market cap of Rs. 19,300.3 crore, KPIL has delivered nearly 127.6 percent of multibagger returns in the last one year and 66.5 percent of positive returns year-to-date.
In terms of financials, the company reported a growth in revenue from operations by 22.3 percent YoY from Rs. 4,882 crore in Q4 FY23-24 to Rs. 5,971 crore in Q4 FY23-24, while its after-tax profit grew by 20.7 percent from Rs. 140 crore to Rs. 169 crore, during the same period.
Kalpataru Projects International Limited (KPIL) is engaged in the business of power transmission & distribution, buildings & factories, water supply & irrigation, railways, oil & gas pipelines, urban mobility (flyovers & metro rail), highways and airports.
Written by Shivani Singh
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