The IIFL Securities Report: Buy Power Grid Corp. - June 18
On June 18, IIFL Securities issued a buy recommendation for Power Grid Corporation India Limited (Power Grid Corp.) with a target price of Rs 340. This represents a potential upside of approximately 3.4% from the current market price of Rs 328.7. The recommendation is based on the company's strong financial performance, robust order book, and positive growth outlook in the transmission sector.
About Power Grid Corp.:
Power Grid Corporation of India Limited (PGCIL) is a government-owned electric utility company headquartered in New Delhi, India. It is responsible for operating and maintaining the national grid and transmitting electricity across the country. PGCIL is one of the largest power transmission companies in the world, with a network of over 169,000 circuit kilometers of transmission lines and 253 substations with a total transformation capacity of over 450,000 MVA. It interconnects all five regional grids of the country and facilitates the transfer of electricity between different states and regions, ensuring a reliable and efficient power supply to consumers.
52 Week Price Trend:
Power Grid Corporation of India Limited (NSE: POWERGRID) has a current market price (CMP) of Rs 328.7, which has risen significantly from its 52-week low of Rs 161.85. However, the stock still has room to grow, considering its 52-week high of Rs 291.5. This potential for further appreciation, coupled with the company's strong financial performance and growth prospects, makes Power Grid an attractive investment option.
Stratzy's MOST Analysis:
POWERGRID's strong fundamentals have earned it a AAA rating from Stratzy's MOST framework. The framework evaluates a company's management, outlook, safety, and trend. POWERGRID excels in all four areas, indicating low fundamental risks. High-rated companies like POWERGRID are often considered more stable and reliable investments, as they have demonstrated sound management practices, a positive growth outlook, strong safety measures, and a favorable industry trend.
Company's Fundamentals:
Power Grid Corp. (NSE: POWERGRID) is an Indian state-owned electric utility company listed on the National Stock Exchange (NSE). Its stock has a Price-to-Earnings ratio (PE) of 17.02, which indicates how much investors are willing to pay for each rupee of earnings. The Price-to-Book ratio (PB Ratio) of 3.08 suggests that the stock is valued higher than its book value, indicating that investors believe in its growth potential. Furthermore, the Dividend Yield of 3.84% represents the annual dividend paid per share as a percentage of the current stock price, providing income for investors. These ratios help investors assess the value and attractiveness of POWERGRID's stock.
Fundamental and Technical information provided in this blog were last updated on 18 Jun, 2024
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