After 1:3 Bonus Issue, Maharatna PSU Stock To Offer Rs 4/Share Dividend; Buy?

Maharatna Power sector PSU stock Power Grid Corporation Of India today hit fresh 52-week high to Rs 207.50 per share. However, Power Grid shares are currently trading in red with the decline of 0.24%. Board of Power Grid on November 7, 2023 approved an interim dividend of Rs 4/- per equity share of Rs 10/- each for the financial year 2023-24. Power Grid shares gained 107% in last 3-years. Check details below:

Power Grid Corp Declares Interim Dividend: Power Grid's Board Of Directors yesterday issued a BSE filing stating, "Further, in terms of Regulation 30 and 43 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is also informed that the Board of Directors have approved the payment of Interim Dividend of Rs. 4/- per equity share of Rs. 10/- each (@40% of the paid-up equity share capital) for the Financial Year 2023-24."

Record Date For Dividend: The BSE filing further stated, "Further, pursuant to Regulation 42 of the SEBI (LODR), 2015, it is informed that the Company has fixed Thursday, 16th November, 2023 as the 'Record Date' for the purpose of ascertaining the eligibility of the Shareholders for payment of Interim Dividend."

The company earlier this year announced 1:3 bonus issue (ex-bonus date was September 12, 2023) and final dividend of Rs 4.75 (ex-dividend date was August 8, 2023.)

Power Grid Corporation Stock Performance & Return: Last trading price of Power Grid share on BSE is Rs 207.50 per share with intraday fall of 0.24%. The stock's 52-week high price is Rs 209.45 per share and 52-week low price is Rs 153.34 per share, respectively. It has a market capitalisation of Rs 1,93,127.04 Crore. Power Grid share rose 15% in last 3-months, soared 21% in last 1-year, gave return of 46% in last 2-years, and rallied 107% in last 3-years. In last 5-years, Power Grid shares surged 95%.

Power Grid Q2 Results: The state-owned power transmission company on November 7, 20223 declared a surge of 3.6% year-on-year (YoY) in consolidated profit at Rs 3,781.4 crore for quarter ended September FY24. The company's consolidated revenue from operations soared 1% to Rs 11,267 crore compared to the corresponding period of last year. Its EBITDA jumped 5.1% on-year to Rs 9,908.4 crore with margin expansion of 340 bps to 87.9% for the quarter under consideration.

Should You Buy Power Grid Shares? Leading brokerage house Sharekhan, from its brokerage report dated September 8, 2023, recommended buy call to Power Grid Corp stock with target price of Rs 290 per share. According to the analyst, "the growth outlook for Power Grid looks bright and the current valuation along with the dividend yield of the stock appears attractive".

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. Leveraging its capacity and experience, consulting services have been provided to several customers globally. POWERGRID is a listed Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public, as per its official website.

Disclaimer:

The stock has been picked from the brokerage report of Sharekhan. 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.