Shares of Power Grid Corporation, India’s leading electric power transmission company, experienced a notable surge of 4 percent on February 20. This significant increase followed the company’s board approval of a substantial Rs 656-crore investment for the implementation of electricity transmission projects across the country.
Additionally, the positive momentum was bolstered by an ‘outperform’ rating initiated by Bernstein, a renowned international brokerage firm, which set a target price of Rs 315 for the stock.
Bernstein’s optimistic view stems from its anticipation of increased capital expenditure (capex) at Power Grid Corporation over the next couple of years, with estimates suggesting a growth of 30 percent. The firm identified interstate transmissions, batteries, and smart meters as new growth areas for the state-utility major.
Moreover, Bernstein highlighted Power Grid’s access to steady cash flows from existing assets and its ability to secure low-cost debt. These factors, combined with regulatory support, paint a promising picture for the company’s future performance.
As of 1:48 pm, Power Grid Corporation’s shares were trading 3.98% higher at ₹287.35, reflecting investor confidence in the company’s strategic investments and growth prospects in the evolving energy landscape.
