Sunday, August 28, 2011

Power Grid - Buy on correction



The company is insulated from fuel availability and power off-take risks unlike other power companies. It also earns a fixed return on its investments. Its performance in the past one year has been impressive and earnings grew 23%. It will benefit from the huge demand for transmission capacity. Despite a 30% correction in the Power Index, the stock remains stable and makes for a less risky investment.


Time Span Price Change %Change
Today 97.35 -2.20 -2.20
Week 101.00 -1.45 -1.43
Month 107.00 -7.45 -6.96
Three Months 97.65 1.90 1.94
Six Months 99.25 0.30 0.30
One Year 105.45 -5.90 -5.59


The scrip gave poor returns in the last 1 year. Buy on declines to 75 levels on deep correction and hold for a target of Rs.150/-


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