Shares of Power Grid Corporation of India ignored the announcement that the company had won a tariff-based competitive bid. The stock is up about 3% this week, and investors appear to have been pulling money. Shares of the company were down 0.7% at Rs 220.65 on the BSE at 9:34 am.

The tender is for establishing the Interstate Transmission System to establish the Khavda Pooling Station-3 at Khavda RE Park on a Build, Own, Operate and Transfer (BOOT) basis. The scope of the project also includes the construction of a new 765/400kV GIS substation, a 765kV DC transmission line and associated works in Gujarat.

Sharekhan said that Power Grid has Rs 47,600 crore in projects on hand, Rs 7,600 crore in ongoing projects, Rs 27,000 crore in new projects and Rs 13,000 crore in competitive tender based on electricity tariffs.

It added that delays in asset monetisation had been disappointing, but management signalled it would maintain a 60% dividend payout ratio.

The brokerage maintained its buy call on the stock with an unchanged target price of Rs 265, and its valuations of 1.6x and 1.4x FY24 and FY25 book value look attractive as net profit is expected to compound growth rate of 10% FY22-25 annually, return on equity of 18%, dividend yield around 6-7%.