Power Grid shares up by 10% to a record high

3 Jun 2024 , 12:56 PM

Power Grid Corporation of India Ltd. shares rose 9.9% to a record high of ₹348.70 on Monday.

At around 12.56 PM, Power Grid Corporation was trading 10.44% higher at ₹342.90, against the previous close of ₹310 on NSE.

On Monday, Power Grid’s market capitalization surpassed ₹3 lakh Crore. It is one of only a few state-run enterprises with a market capitalization greater than that of SBI, NTPC, and others.

The government owns 51.34% of Power Grid, which has a market value of nearly ₹1.6 lakh Crore at its peak.

On the charts, Power Grid is trading above all of its important 50, 100, and 200-day moving averages. The Relative Strength Index on the charts is at 67, approaching the overbought zone. An RSI rating above 70 implies that the stock is overbought.

Power Grid released its March quarter results last month, with sales falling 2.5% from the previous year and net profit down 2.1%. The EBITDA margin also fell by more than 600 basis points from the previous year.

CLSA maintained its “outperform” rating on the company and set a price target of ₹345. It designated fiscal year 2024 as a year of market share gains for Power Grid.

Out of the 21 analysts who cover Power Grid, 13 have a “buy” rating, one has a “hold” call, and the remaining seven have a “sell” suggestion.

Last year, Power Grid awarded bonus shares at a ratio of 1:3, which equals one free share for every three shares held.

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