As per views of stock market experts, investors can purchase PGCIL (Power Grid Corporation of India) stock above Rs 95, in order to achieve an intraday target of Rs 97.5.

The stop loss for the suggested counter is Rs 94.2. The stock pricing becomes more attractive, and reach above Rs 99.5, if the stock markets remain positive.

On Tuesday (July 22), the company’s shares closed at Rs 95.70, down 4.2%, on BSE. The total volume of the shares traded was 387,540. Current EPS and P/E ratio stood at 3.44 and 29.18 respectively. The stock has also seen 52-week high of Rs 167.45 and low of Rs 70.60 on BSE.

The outlook for the stock is really very strong, and it is expected to move up on the back of huge volumes.

On July 12, the company’s directors granted in-principle approval to the setting up a wholly-owned subsidiary company responsible for Independent power system operation.

This is in proportion to the instruction of GOI (Government of India) on the arrangement of the operation of national and regional load dispatch centers received by the company. 

CRISIL assigned its bank loan ratings of ‘AAA/Stable/P1+’ to PGCIL’s various bank facilities, and has reaffirmed its ratings on the company’s other debt plans. The ratings carry on reflecting PGCIL’s tactical importance to the Indian Govt, its first-rate operating ratio, and its strong cash accruals and revenues.

Power Grid registered a profit of Rs 14,484.70 million for the year ended March 2008.

The company’s profits stood at Rs 46,148.60 million, whereas total income stood at Rs 50,815.30. The EPS for the year ended Mar. 31, 2008 stood at Rs 5.72.

At its meeting held on June 18, 2008, the company’s board declared 7% final dividend of share capital, i.e. Rs 0.70 a share of Rs 10 each.

The stocks of other companies from the same sector, which are looking good for short and medium-term trading, include NTPC, Reliance Power, Tata Power and Reliance Infra.