Power Grid Corporation of India Limited (POWERGRID), founded on October 23, 1989, under the Company Act of 1956, is a “Maharatna” public sector enterprise and the largest electric power transmission utility in India. The company has maintained an “Excellent” rating under its Memorandum of Understanding with the Ministry of Power since 1993-94. POWERGRID has been listed on the stock exchange since 2007 and is known for paying consistent dividends, currently yielding 3.58% annually.
For the financial year 2024-25, POWERGRID’s Board of Directors has approved a first interim dividend of ₹4.50 per equity share of ₹10 each, which represents 45% of the paid-up equity capital. The dividend will be paid on December 4, 2024, to shareholders who are on record as of November 14, 2024.
In the September 2024 quarter, POWERGRID reported net sales of ₹11,277.76 crore, showing a slight increase of 0.09% from ₹11,267.07 crore in the same quarter of 2023. Its net profit for Q2FY25 stood at ₹3,793.02 crore, marking a modest increase of 0.31% from ₹3,781.42 crore in Q2FY24. The company’s EBITDA also saw a small rise of 0.96%, from ₹10,171.73 crore to ₹10,269.49 crore.
Regarding the stock’s outlook, Mandar Bhojane, an equity research analyst at Choice Broking, suggests that POWERGRID, currently trading at ₹316, is showing signs of a bullish reversal. The stock is supported by the 200-day Exponential Moving Average (EMA) and has been consolidating above key support levels, indicating a potential upward move. An increase in trading volume further supports this outlook. If the stock closes above ₹325, it could target short-term levels of ₹340 and ₹360. Immediate support is seen at ₹306, providing a favorable buying opportunity on dips. A stop-loss is recommended at ₹300 to manage risk effectively.
In summary, POWERGRID is viewed as an attractive investment with a combination of stable dividend payouts and potential for capital appreciation based on current technical trends.
Disclaimer: The information provided is for informational purposes only and should not be considered as financial advice. Please conduct your own research or consult with a professional financial advisor before making any investment decisions.
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