Power Grid Corporation of India share price surged over 3 per cent on Thursday and was among the top gainers in the Nifty pack.
Power Grid Corporation of India shares continued to rise as analysts remained bullish about the company post its first quarter results. The share price of the company surged over 3 per cent on Thursday and was among the top gainers in the Nifty pack. Beating estimates, Power Grid Corporation of India on Tuesday posted 32.90 per cent increase in net profit at Rs 1807.77 crore for the quarter ended June 30, 2016 as compared to Rs 1355.64 crore in the corresponding quarter a year ago.
At 12.34 pm, Power Grid Corporation shares were trading 3.04 per cent up at Rs 179.85. The scrip opened at Rs 177.40 and has touched a high and low of Rs 180.45 and Rs 176.75, respectively, in trade so far. Later, the share price of the company closed 4.24 per cent up at Rs 181.95.
Analysts have not only been upbeat about its June quarter earnings, but have also given a thumbs up to the earnings outlook. Brokerage house Reliance Securities while remaining positive on PGCIL said,”With huge capex in the pipeline, the company fundamentals would continue to remain strong supported by least exposure to operational risks i.e. fuel and SEBs’ weak financials.” It has reiterated its ‘Buy’ rating on the stocks with a marginally revised target price of Rss 190.
On similar lines, Religare Capital Markets has maintained the ‘Buy’ rating deriving comfort from the company’s accelerated commissioning schedule, an optimal capital structure and improving ROEs. The brokerage house is bullish on the power transmission company with a target price of Rs 185 for March 2017 and it further believes that share can hit Rs 275 by March 2019.
The company is also reportedly planning to participate in intra-state projects, a deviation from its traditional role as the central power transmission utility that has been prompted by the reforms in state-run power distribution companies.
The firm plans to expand its consultancy services in states but it is more keen to participate in projects as a joint venture partner to different states and even take up projects on ownership basis as a developer.
Power Grid Corporation of India is an Indian state-owned electric utilities company headquartered in Gurgaon, India. Power Grid transmits about 50% of the total power generated in India on its transmission network.
Nomura analysts said management’s comments’ suggest “project execution remains top notch, earnings outlook remains robust”.