Shares of Power Grid Corporation of India were inching up on Thursday after the company won a bid to set up an inter-state transmission system in Madhya Pradesh.

What Happened: On Wednesday, the company said that it had received a letter of intent for the project which will be established on a build, own, operate and transfer basis.

The project involves establishing a new 765/400/220 kilovolt substation at Kurawar, along with constructing a 765-kilovolt and 400-kilovolt double-circuit transmission line and extension work for associated bays at existing substations in Madhya Pradesh.

See Also: IREDA Shares Climb On Fundraise Approval, Up To 7% Stake Dilution For Govt

Brokerage View: Jefferies had a “buy” call for the company with a target price of ₹390, indicating a 17% upside from its closing price on Wednesday.

The company has bids worth ₹1 lakh crore at the tendering stage, representing a 1.8 times increase year-over-year, which provides strong visibility for future growth, the brokerage noted.

A clear bid pipeline and a higher dividend payout are likely to drive the stock upwards, Jefferies said. Moreover, the company’s management has upheld its capital expenditure guidance for FY25 and remains optimistic about an increase through FY27, which reinforces Jefferies’ positive outlook on the company.

Price Action: Power Grid Corporation was trading 0.66% higher at ₹336.50 on Thursday morning.

Read Next: NTPC Shares Fly After Green Energy Subsidiary Files Draft Papers For ₹10,000 Cr IPO