Power Grid shares surge 10% to a record high; Market cap crosses ₹3 lakh crore.
Power Grid's Stock Surges, Crossing ₹3 Lakh Crore Mark: Analysis and Outlook.
Power Grid Corporation of India Ltd. witnessed a surge in its stock price, climbing by as much as 9.9% on Monday, reaching a new peak of ₹340.7. This propelled Power Grid's market capitalization beyond the ₹3 lakh crore mark, placing it among the select few state-owned enterprises alongside SBI and NTPC to achieve such a valuation.
The government maintains a controlling stake of 51.34% in Power Grid, valued at over ₹1.6 lakh crore at the session's pinnacle.
Technically, Power Grid's stock is trading above its significant 50, 100, and 200-Day Moving Averages. The Relative Strength Index (RSI) stands at 67, approaching the overbought threshold. An RSI above 70 typically indicates an overbought condition. Despite reporting a 2.5% dip in revenue and a 2.1% decrease in net profit compared to the previous year's March quarter, Power Grid's EBITDA margin contracted by more than 600 basis points.
CLSA, a brokerage firm, maintains an "outperform" rating on the stock, setting a price target of ₹345 for the fiscal year 2024, foreseeing a period of market share expansion for Power Grid.
Among the 21 analysts covering Power Grid, 13 advocate a "buy," one suggests a "hold," while the remaining seven recommend "sell."
Last year, Power Grid issued bonus shares in a 1:3 ratio, translating to one free share for every three held. Currently, Power Grid shares are trading 8.4% higher at ₹336.30. Year-to-date, the stock has surged by 41%, marking a remarkable 90% increase over the past 12 months.
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