Macquarie has initiated an outperform rating on Power Grid Corporation of India, setting a target price of ₹380, which suggests a potential upside of 18% from the current market price (CMP) of ₹322.65. The brokerage sees Power Grid as well-positioned to capitalize on the capex cycle and as a proxy play on renewable energy growth.
Following a period of slowdown, Power Grid is expected to benefit from an increase in transmission capex. Macquarie highlights that the recent rebound in the total addressable market (TAM) helps mitigate concerns around competitive pressure on returns from incremental capital investment in the transmission sector.
Macquarie also indicates a preference for Power Grid over NTPC due to its strategic alignment with transmission expansion and renewable energy integration.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult a financial advisor before making any investment decisions.
