This PSU Maharatna Stock Approved 2nd Dividend Of Rs 5, ICICI Securities Says "Add" For 13% Return

ICICI Securities has assigned a "Add" call to Power Grid Corporation Of India Ltd, a power sector PSU Maharatna CPSE. The brokerage has estimated a target price of Rs 242 apiece on the stock, which implies an upside of 13% considering the current market price. The stock on its meeting held on 31st January 2023 declared an Interim dividend of Rs 5 per equity share for the FY23. The stock also fixed the record date for the declared dividend. This is a large-cap stock having a market cap of Rs 1,49,867 crore. Check below for more details:

Power Grid Corporation Of India Ltd stock performance

The stock of Power Grid Corporation Of India last traded at Rs 214.85 apiece on NSE, gaining 1.01% as compared to its previous close. Its 52 week high is Rs 248.35 apiece recorded on 10 May 2022 and its 52 week low is Rs 186.35 apiece recorded on 26 September 2022, respectively.

The stock in a week has fallen 2.01%. In 3 months it fell 5.79%. It gave 1.68% positive return in past 1 year. In 3 years it gained 52.9%. In 5 years it gained 48.51%.

 

Power Grid Corporation Of India Ltd declared Interim Dividend of Rs 5/-

According to the regulatory filing by the Board of Directors of Power Grid Corporation Of India Ltd to BSE on January 31, 2023, "In terms of Regulation 30 and 43 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is also informed that the Board of Directors, in their Meeting held today i.e. on 31st January, 2023, have approved the payment of 2nd Interim Dividend of Rs. 5/- per equity share of Rs. 10/- each (@50% of the paid-up equity share capital) for the Financial Year 2022-23. The 2nd Interim Dividend shall be paid to the Members on 24th February, 2023."

 

ICICI Securities recommends "ADD" the stock with a target price of Rs 242/share

ICICI Securities said, "We maintain ADD on the stock with DCF based target price of Rs242/sh. Over FY23E-FY28E, we have factored in capex of Rs677bn and capitalisation of Rs810bn (Rs230bn works-in-hand, Rs290bn RTM projects awarded, Rs290bn potential TBCB wins {50% of the estimated Rs600bn project pipeline over the next three years}). However, we have not included capex on other businesses, including smart metering, as we await further clarity on its revenue model. The stock is currently trading at FY24E P/E of 9.7x and P/B of 1.7x, with a dividend yield of 7%."

 

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. 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 consult with certified experts before making any investment decision.