Why do you think its not sustainable given the current assets. Where will the money leak? the price of transmission will escalate with inflation if it not already built into the pricing. Secondly, even if they dont escalate Rs 12 dividend looks steady unless management says so. Last quarter the management had to dig in about few paisa ( i believe they took 10-15 paisa from reserve to meet their stated Rs 3 per quarter goal). I dont think management is smart in quoting a yield ahead of time when so many variables could impact cost. They should instead talk about long term PPAs etc so that investors get visibility into future cashflows.
As i see it, its a good place to park cash and get 9-12% yield and if govt bond rates go down then this stock will rally as it provides a much higher yield. So if govt rates stay put u get paid a good yield but if govt rates fall u get capital appreciation too.
Management quality is good since these are PowerGrid guys with experience. Holding for 20-25% gain in capital while collecting 12% yield.
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