Power Grid Corp trades in red after Q2 profit rises 3.6%

Brokerage firm Sharekhan as assigned a ‘buy’ rating to the Power Grid stock with a target price of Rs 290 in a recent report.

Shares of Power Grid Corporation (PGCL) were quoting 0.46 percent lower in trade on November 8 after the company posted a 3.6 percent rise in Q2 profit. At 11:24am, the stock was trading at Rs 207.10 on the NSE.

The state-owned power transmission company has reported a 3.6 percent year-on-year increase in consolidated profit at Rs 3,781.4 crore for quarter ended September FY24.

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Consolidated revenue from operations grew by 1 percent to Rs 11,267 crore compared to the corresponding period of last fiscal, while its EBITDA increased 5.1 percent on-year to Rs 9,908.4 crore with margin expansion of 340 bps to 87.9 percent for the quarter. The company has received the board approval for an interim dividend of Rs 4 per share for FY24.

Also Read: Power Grid Q2 net profit inches up 4% to Rs 3,781 crore

Brokerage firm Sharekhan as assigned a ‘buy’ rating to the Power Grid stock with a target price of Rs 290 in a recent report. The report further stated that, “the growth outlook for Power Grid looks bright and the current valuation along with the dividend yield of the stock appears attractive”.

The Power Grid stock has given a return of 13.05 percent over the last six months. The benchmark Nifty50 index has given a return of 6.28 percent over the same duration.