Prabhudas Lilladher Recommends 'BUY' on Power Grid, Sets Target at Rs 324

• Prabhudas Lilladher recommends a 'BUY' rating for Power Grid Corporation of India (PWGR) with a target price of Rs 324.
• Power Grid's Q3FY26 capitalization significantly exceeded expectations, driven by ministry interventions and insulated cross arm (ICA) technology.
• The company raised its FY26E/FY27E capitalization guidance by 10-15% post Q3FY26.
• PWGR has a strong order book of Rs 1.45 trillion and a robust multi-year capital expenditure plan (FY26E: Rs 320bn, FY27: Rs 370bn, FY28: Rs 450bn).
• Power Grid is considered the best proxy for India's transmission capital expenditure upcycle due to its market position, regulated returns, and healthy dividend yield.