Buy India Grid Trust; target of Rs 113: Edelweiss Securities
Edelweiss Securities’ research report on India Grid Trust
Our conviction on India Grid Trust’s (IndiGrid) bright prospects is underpinned by: 1) significant spurt in IRR(270bps) & DPU(3%) led by recent acquisition & framework arrangement of assets; 2) fresh equity issuance & KKR coming on board as additional sponsor instill confidence & enhances visibility on future acquisitions (beyond ROFO); 3) lifting of related-party transaction cloud with KKR now controlling 74% in investment manager arm improves corporate governance (CG); and 4) 600bps spread between 10 year G-secs (6.7%) and IndiGrid ex terminal value (13.1%; AAA rated) is extreme and warrants rerating.
Maintain BUY with a revised TP of INR113 (earlier-INR105) led by change in risk free rate and new assets. In our TP we now assign 3% to the growth value.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.