The move is positive for the company as it would help the company to execute and capitalize its pending projects. It also expects new orders from Indian railways for electrification.
PGCIL has a strong project pipeline of ~Rs1,40,000 cr, which ensures strong visibility for capex and project completion over FY17-19E. PGCIL can sustain high capitalisation to capex ratio at more than 1.3x (FY17- 1.27x) over the next 2‐3 years led by stepped‐up focus on commissioning.
PGCIL has strongest earnings growth within the sector, best operating matrix across utilities, receding regulatory and sectoral risks, and inexpensive valuations (11x FY19E).