Powergrid Infrastructure Investment Trust (PGInvIT) has shown a solid performance in terms of dividend payments and overall financial health. Here are some key points from recent reviews:
Dividend Yield and History:
• PGInvIT has a high dividend yield of 12.5%, significantly above the market average and placing it among the top 25% of dividend payers in the Indian market .
• In the last financial year, the trust declared a total dividend of ₹12, distributed across four quarters .
• Recent dividends have been consistently paid, with the most recent being ₹3 per unit for the first quarter of FY2024-2025 .
Financial Performance:
• For the full year ending March 2024, PGInvIT reported earnings of ₹9.27 billion, a significant turnaround from a loss in the previous year .
• The earnings per share (EPS) for the first quarter of 2024 was ₹2.05, slightly down from ₹2.28 in the same period last year .
Growth and Stability:
• The earnings and dividends have shown some volatility but overall indicate a positive trend with a strong payout ratio of around 88.8%, suggesting that the dividends are well-covered by the earnings .
• The trust’s strategy includes acquisitions, such as increasing its stake in Powergrid Jabalpur Transmission Limited, which could support future growth .
Valuation:
• The stock is considered undervalued by some analysts, trading at a P/E ratio of 9.3x, indicating potential for appreciation .
Overall, PGInvIT appears to be a robust option for income-seeking investors, given its high dividend yield and strong financial fundamentals, though investors should be aware of the earnings volatility and monitor the trust’s ongoing performance and strategic moves.