PSU Power Stock Surges 7% As Profits Jump 10% In Q3

Power Grid Corporation broke its two-straight day losing streak on Thursday going up around 7% to hit an intraday high of ₹288.05.

What Happened: The PSU reported a consolidated net profit of ₹4,028.25 crore for the quarter ended December 31, 2023, marking a 10.5% increase from ₹3,645.29 crore in the same period a year ago. The number beat street estimates.

Revenue from operations stood at ₹11,549.79 crore, reflecting a 2.6% increase compared to ₹11,261.78 crore in the corresponding quarter of the previous year.

See Also: Why This Midcap Stock Is Down Today Despite 78% Uptick In Q3 Profit

EBITDA rose to ₹10,482.8 crore, up 3.2% from the ₹10,161.88 crore reported in the same period last year. The EBITDA margin was at 89%, compared to 88$ in the corresponding period of the previous year.

The company also announced a second interim dividend of Rs 4.5/share. Shareholders will receive the interim dividend on March 5. The record date for the dividend is Feb.15.

Analyst Reactions: CLSA maintained an ‘outperform’ rating on the stock raising the price target from ₹261 to ₹285. Citi has maintained a ‘buy’ call on the stock revising the target price to ₹300 from ₹251.

Price Action: Shares of Power Grid Corporation were up 4.78% to trade at ₹280.75 in early trade on Thursday.

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Posted In: EarningsEquitiesNewsPrice TargetReiterationMarketsAnalyst RatingsMoversTrading IdeasPower Grid Corporation Of India