Credit Suisse has picked Power Grid Corporation from the utilities sector as an outperformer. The scrip closed at Rs 215.5, up by more than 1.4% on NSE this afternoon. The Swiss multinational firm has a target price of Rs 250 on the scrip. The shares have underperformed the Sensex with returns of 15.8% in the year. Sensex is up by more than 21% since January.
Notably, the shares have shed nearly 5% in the last one month. State-run Power Grid Corporation of India reported a 14 per cent rise in net profit at Rs 2,052.41 crore for the quarter ended June 30, 2017 against Rs 1,801.77 crore in the corresponding quarter last year. Revenue of the company increased by more than 17 per cent to Rs 7181.35 crore during the latest quarter. It had reported topline of Rs 6,119.86 crore in the corresponding quarter last year.
Two other firms on the radar of Credit Suisse include NTPC and JSW Energy. Credit Suisse has a neutral rating on NTPC with a target of Rs 180. The shares closed at Rs 168 on Monday, up by a meagre 0.3%. In case of JSW Energy, Credit Suisse has a neutral rating with a target of Rs 60. The scrip closed at Rs 77, down by more than 0.7% since previous close on NSE.
Credit Suisse says that the overall power demand remains weak in India. According to the multinational financial services firm, the power demand was better in August at 8% against 5% in April-June 2017. However, Credit Suisse observes that the demand has not sustained in September.