Power Grid Q3 Results Review — Rising Capex Needs Weigh On Dividend, Says Motilal Oswal; Maintains 'Buy'

Power Grid's FY25 capex guidance was raised to Rs 230 billion (from Rs 200 billion), capex and capitalization for FY26 was guided at Rs 280-300 billion, while the same for FY27 was guided at Rs 350 billion..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Power Grid Corporation Of India Ltd.’s Q3 FY25 reported standalone PAT was in line at Rs 38.9 billion (-2% YoY). On a consolidated basis, reported PAT was down 4% YoY at Rs 38.6 billion. In the earnings call:FY25 capex guidance was raised to Rs 230 billion (from Rs 200 billion),capex and capitalization for FY26 was guided at Rs 280-300 billion, while the same for FY27 was guided at Rs 350 billion,management guided that the dividend payout may see some moderation given mounting capex. Of the current order book of Rs 1.43 trillion, ~33% is attributable to RTM projects, where the company earns a healthy 15% ROE. Following the Q3 FY25 results, we moderate our DPS estimates to Rs 9/ Rs 10/ Rs 13.5 for FY25/FY26/FY27. Power Grid has declared a second interim dividend of Rs 3.25 per share for FY25. We reiterate our Buy rating on the stock with a target price of Rs 375 based on 3.4x Dec-26 book value per share..Click on the attachment to read the full report:.Swiggy Q3 Results Review: Motilal Oswal Reiterates 'Neutral' Stance On The Stock — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Power Grid Q3 Results Review — Rising Capex Needs Weigh On Dividend, Says Motilal Oswal; Maintains 'Buy'

Power Grid has declared a second interim dividend of Rs 3.25 per share for FY25.

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