India's Power Grid at bottom of Nifty on dividend cut, higher capex outlook

Power Grid of India

22/05/2025 07:17

** Power Grid Corp PGRD.NS down 2.4%, top loser on Nifty 50 .NSEI, which is down 0.9%

** Co warns of dividend cut but hikes capex outlook to 450 bln rupees ($5.25 bln) for next two years

** Motilal Oswal says stock might face pressure on div warning

** But Ambit Capital says PGRD is a growth stock, not a dividend yield stock at this point

** Says investors should not fret on div as long as projects generate higher return on equity (ROE) than cost of equity capital (COE)

** Still, adds capex execution to be monitored

** PGRD down 6.2% YTD vs 4% rise in Nifty 50

 ($1 = 85.6880 rupees)

 (Reporting by Sethuraman NR in Bengaluru)

 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net ))