Rs 2.75 Dividend, 1:3 Bonus: Buy Maharatna PSU After Latest Acquisition Update, TP Rs 350

Brokerage firms CLSA and Choice Broking are bullish on Maharatna Power sector PSU Power Grid Corporation Of India shares and recommended buy call with maximum target price of Rs 350 per share. Current market price of Power Grid Corporation share on BSE is Rs 309.90 per share. Earlier, Board of Power Grid Corporation recommended a final dividend of Rs 2.75 per share for the FY 2023-24. Power Grid Corporation also gave nod to fundraising of Rs 5000 crore.

FII/FPI have decreased holdings from 30.51% to 29.82% in March 2024 quarter Number of FII/FPI investors increased from 1361 to 1388 in March 2024 quarter. Mutual Funds have increased holdings from 10.52% to 10.91% in Mar 2024 qtr. Government Of Singapore has 2.82% stake in Power Grid. More details below:

Power Grid Corporation Declares Update On Acquisition: According to BSE filing, Power Grid has acquired Khavda IV-E2 Power Transmission Limited for the "Transmission System Project for Evacuation of Power from Potential Renewable Energy Zone in Khavda Area of Gujarat under Phase-IV (7GW) Part E2" after competing with various private sector players and emerging as successful bidder in tariff-based competitive bidding (TBCB) process." According to the company, Khavda IV-E2 Power Transmission Limited shall implement augmentation works at existing substation namely Khavda Pooling Station -2 in the state of Gujarat.

Power Grid Corporation Issues Update On Commissioning Project: As per the BSE issued on May 28, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that project under "Jamnagar Oil Refinery of Reliance Industries Limited (RIL) to connect with Jam Khambhaliya ISTS PS" has been commissioned with effect from 5th May, 2024 for which Notification for Commercial Operation (DOCO) has been received on 27th May, 2024."

Power Grid Corporation Dividend: The exchange filing of Power Grid dated May 22 stated, "recommended a final dividend of Rs. 2.75/- per share (i.e. @ 27.5% on the paid-up equity share capital) for the Financial Year 2023-24 subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company. The final dividend would be paid within 30 days from the date of its declaration at the AGM. This final dividend is in addition to the 1st Interim Dividend of Rs. 4.00/- per share i.e. @ 40% on the paid-up equity share capital paid on 6th December, 2023 and 2nd Interim Dividend of Rs. 4.50/- per share (i.e. @ 45% on the paid-up equity share capital) paid on 5th March, 2024 for the Financial Year 2023-24."

Power Grid Corporation Dividend History: Power Grid Corporation announced 38 dividends since March 10, 2008. In last 1-year, Power Grid Corporation announced an equity dividend amounting to Rs 13.25 per share. At the current share price of Rs 309.90, Power Grid Corporation of India Ltd offers dividend yield of 4.27%. Adjusting for Bonus/Splits the dividend yield is 3.89%.

Power Grid Corporation Q4: On May 22, The PSU announced a fall of 3.5% in its consolidated net profit at Rs 4,137.21 crore for the quarter ended May 31, 2024 as against Rs 4,288.11 crore reported in the similar quarter of last year. The maharatna PSU's revenue from operations announced at Rs 11,978.11 crore, down 2.5% as against Rs 12,285.6 core in the corresponding quarter of last year. Its EBITDA fell by 6% to Rs 10,488 crore for March 2024 quarter as compared to Rs 11,149.97 crore in the corresponding quarter of last year. EBITDA margin stood at 87.59% for the quarter under review as compared to 90.76% in the same quarter of last fiscal.

Power Grid Corporation Share Performance & Return: 52-week high price of Power Grid shares on BSE is Rs 328.35 per share (as on 22/05/2024) and 52-week low price is Rs 172.54 per share (as on 31/05/2023), respectively. Power Grid Corporation has a market capitalisation of Rs 2,88,225.71 crore. Power Grid Corporation shares rallied 48% in last 6-months, jumped 77% in last 1-year, gave return of 77% in last 2-years, and soared 144% in last 3-years. In last 5-years, Power Grid Corporation shares gave return of 191%.

Should You Buy Power Grid Corporation Share? CLSA has issued buy call with target price of Rs 345 per share. The analyst has given outperform call saying "capex beat estimates, capitalisation missed but good fy25 guidance." Meanwhile, Sumeet Bagadia of Choice Broking recommended buy call with target price of Rs 350 per share and maintain stop loss at Rs 304 per share. The analyst said, the Relative Strength Index (RSI) stood at 52 and is trending upward, indicating increasing buying momentum. The current trading price of Power Grid Corporation of India is ₹310. The stock has recently formed a higher high higher low pattern on the daily chart with a significant increase in trading volume, indicating a potential breakout.

Power Grid Corporation Bonus Share History: It announced 2 bonus issues since July 29, 2021. The PSU's last bonus issue was declared in the ratio of 1:3 with ex-bonus date was set as September 12, 2023.

Power Grid Corporation About: Power Grid Corporation of India Limited is a Schedule 'A', 'Maharatna' Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Company Act, 1956. POWERGRID, one among the largest power transmission utilities in the world, has developed expertise in its core areas such as power transmission, sub-transmission system, distribution management, load dispatch & communications, in India and abroad, as per its official website.

Disclaimer: The stock has been picked from the brokerage report of CLSA and Choice Broking. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.