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POWER GRID CORPORATION
CMP (Rs.): 97.60 EPS (Rs.): 4.60 52 Week High : 121.45
MCap (Rs. Cr.): 44723 Book Value(Rs.): 43.95 52 Week Low : 91.80
Fundamental View :
The company is investing Rs 5,540 crore on five projects across the country. These
include an investment of Rs 2,743 crore to set up a transmission system in the first
phase of a generation project in Orissa with a commissioning schedule of 36 months
from the date of investment approval. The firm will also invest Rs 1,719 crore for
setting up pooling stations for private power generation projects in Chhattisgarh.
As transmission utility the company charges the customers a transmission charge for
recovery of annual fixed cost consisting of components – return on equity, interest
on outstanding debt, depreciation, operation and maintenance expenditure and
interest on working capital.
Outlook: PGCIL is a principal electric power transmission company owning and operating
more than 95% of the country's inter-state and inter-regional electric power transmission
systems. The company is investing heavily on its projects and looking to the increasing
opportunity in the sector we expect that the momentum likely to continue.
Technical View:
In the daily charts the stock is below its 25 DMA which is at 97.46. The 14 day RSI is 47.75,
MACD on daily charts is -0.32. The stock is below its 200 DMA which is at 102.35.
Recommendations:
The stock has failed to move above 100 levels for the last seven weeks and it has good
support in 92 – 94 zones. After FPO the stock has underperformed the market and the
sideways range may continue as long as breakout above 103 is not seen.
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