1:3 Bonus Share, Rs 13.25/Share Dividend: Buy Maharatna PSU, TP Rs 355, Fundraise Approved

Global brokerage firm Goldman Sachs has assigned buy call to Maharatna Power sector PSU Power Grid Corporation Of India (PGCIL) share with target price of Rs 355 per share. Last trading price of Power Grid Corporation share on BSE is Rs 280.20 per share with intraday gain of 2.13%. Power Grid Corporation shares gave return of 62% in last 1-year and 137% in last 3-years. The PSU on April 17 approved fundraise of upto Rs 12,000 crore.

PGCIL offered dividend amounting to Rs 13.25/share in last 1-year and bonus share in 2023 in the proportion of 1:3 implying 1 bonus share for every 3 shares held. The power sector PSU has a market cap of Rs 2,60,602.92 crore. More details below:

Power Grid Corporation Approves Fundraise: As per the regulatory filing of the company dated April 17, 2024, "this is to inform that the Committee of Directors for Bonds in their meeting held on today i.e. on 17th April, 2024 has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable POWERGRID Bonds Issue(s) during FY 2024-25 in one or more tranches / series upto Rs. 12,000 Crore."

Goldman Sachs Has Buy On Power Grid Share: The analyst has identified large cap Maharatna PSU Power Grid Corporation of India (PGCIL) as the biggest beneficiary and expect it to seize a strong portion of estimated grid total addressable market (TAM) between FY24-50E, representing one-third of India's overall energy transition TAM. It pointed out that the PSU's strong balance sheet, low cost of debt, and robust annual free cash generation position it favorably to capitalize on the TAM estimate. Goldman initiated coverage on PGCIL with buy call and set a 12-month SoTP-based target price of Rs 355 per share.

Power Grid Corporation Share Performance & Return: The 52-week high price of Power Grid Corporation shares on BSE is Rs 298.95 per share (as on 07/03/2024) and 52-week low price is Rs 171.23 per share (as on 19/04/2023), respectively. Power Grid Corporation shares soared 36% in last 6-months, offered return of 62% in last 2-years, and surged 156% in last 5-years. In last 10-years, Power Grid stock zoomed 365%.

Power Grid Corporation Bonus Share History: Power Grid Corporation of India Ltd. offered 2 bonuse 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 announced 38 dividends since March 10, 2008.In 1 year, Power Grid Corporation of India announced an equity dividend amounting to Rs 13.25 per share. At the current share price of Rs 275.20, Power Grid Corporation of India offers a dividend yield of 4.81%. Adjusting for Bonus/Splits the dividend yield is 4.38%.

About: It 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 Goldman Sachs. 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.