Wednesday, May 23, 2012

CLSA upgrades Power Grid on stronger orders

CLSA upgrades Power Grid Corporation of India to "buy" from "outperform", while maintaining its target price at Rs 125, citing stronger-than-expected orders.

CLSA raises its capex estimates for the next three years, though says it could lead to equity dilution of 10% in fiscal 2014 if the company maintains 70:30 debt equity funding, higher than its previous estimate of 5%.

Shares in Power Grid fall 0.6% to Rs 103.10, slightly outperforming 0.74% fall in Nifty index.

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