Motilal Oswal maintained a bullish stance on Power Grid Corporation of India as it expects the company to be a key beneficiary of transmission capex upcycle. 

What The Brokerage Said: Motilal Oswal maintained a "buy" call with a target price of ₹425. The brokerage said the company is strategically positioned to capitalise on these investments in the sector. 

The Union Minister of Power Manohar Lal announced the finalisation of the National Electricity Plan (NEP) earlier this week. The plan has an outlay of ₹9.2 lakh crore and is looking to address the rising demand for electricity and help integrate renewable energy and green hydrogen into the grid. 

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NEP aims to prepare the country's peak demand of 458 gigawatts by 2032 and expand the transmission network to 0.648 million circuit kilometres by 2032 from 0.485 million circuit kilometres in 2024. The plan also aims to increase transmission capacity to 2,342 gigavolt-amperes from 1,251 gigavolt-amperes.

Furthermore, the framework also looks to increase electric vehicle charging stations in the country to 1 lakh by 2030. 

Power Grid recently won a couple of orders to develop state transmission lines in Gujarat. It won a bid to develop the transmission system at two Khavda pooling stations and to establish an interstate transmission system at Jam Khambhaliya PS (GIS).

Price Action: Shares of Power Grid were down 2.09% to ₹357.80 on Friday morning. 

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