Shares of Power Grid Corporation of India hit a 52-week high of Rs 259.80 in morning trade on June 30 after the state-run company said its board has approved three investment proposals worth Rs 389 crore.
Power Grid shares were trading 2.14 percent up at Rs 255.50 at 9.50am on the BSE.
In a post-market-hour filing on June 28, Power Grid said its Committee of Directors on Investment on Projects has approved an investment proposal for change in scope for establishment of dedicated telecom network for NTAMC at an estimated cost of Rs 164.38 crore.
The board also approved 'Western Region expansion scheme – XXXIII – Part A' at an estimated cost of Rs 115.09 crore, scheduled to be commissioned by August 15, 2024.
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Besides, the company received the investment approval for 'ICT Augmentation at Navsari (New) associated with integration of additional 7 GW RE power from Khavda RE park under Phase-III' at an estimated cost of Rs 109.47 crore.
This project is expected to be commissioned by October 2025.
Last month, Power Grid Corporation of India - one of the largest power transmission utilities in the world - reported a growth of 3.94 percent year-on-year (YoY) in consolidated net profit to Rs 4,320.43 crore from Rs 4,156.44 crore.
Revenue from operations came in at Rs 12,263.72 crore, up 14.75 percent from Rs 10,686.77 crore in the same quarter last year.
The board of directors recommended a final dividend of Rs 4.75 per share for 2022-23, subject to the approval of shareholders. The total dividend (including interim dividend) for the financial year 2022-23 was at Rs 14.75 per share.
Shares of Power Grid are up 18 percent this year till date.
The country's largest power transmission utility tramsmits about 45 percent of total power generated in India through its network. It also offers transmission-related consultancy to more than 150 domestic clients and owns and operates 71673 km of telecom network.
“Power Grid has been a steady performer on account of strong asset addition in FY16-20. With relatively small sizes of renewable projects, the growth rate will taper down for the stock supported by decent dividend yield but the same has been discounted while new business initiatives will take time to show results,” ICICI Securities said in a recent note.
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