Goal: ₹375
CMP: ₹281.25
Energy Grid (PWGR)’s Q3-FY25 reported standalone (SA) PAT was in line at ₹3,890 crore (-2 per cent y-o-y). On a consolidated foundation, reported PAT was down 4 per cent at ₹3,860 crore. In 3QFY25, its JVs reported a lack of ₹5.1 crore, considerably enhancing from ₹104.60 crore loss in Q2-FY25.
Within the earnings name: FY25 capex steering was raised to ₹23,000 crore (from ₹20,000 crore), capex and capitalisation for FY26 was guided at ₹28,000-30,000 crore, whereas the identical for FY27 was guided at ₹35,000 crore, administration guided that the dividend payout may even see some moderation given mounting capex. :
Of the present order e book of ₹1.43 lakh crore, about 33 per cent is attributable to RTM initiatives, the place the corporate earns a wholesome 15 per cent ROE. Moreover, the board accepted an funding of ₹370 crore for the 400kV Vindhyachal PS – Sasan D/C Line at Hindalco Switchyard, scheduled for commissioning by Dec’26.
Following the Q3-FY25 outcomes, we average our DPS estimates to ₹9/₹10/ ₹13.5 for FY25/FY26/FY27. Energy Grid has declared a second interim dividend of ₹3.25 a share for FY25. We reiterate our Purchase ranking on the inventory with a TP of ₹375 primarily based on 3.4x Dec-26 BVPS.
