Pick of the Week: Powergrid ltd.

1. POWERGRID CORPORATION OF INDIA LTD.
 The Power Grid Corporation of India Limited (POWERGRID), is an Indian state-owned electric utilities company
headquartered in Gurgaon, India. POWERGRID transmits about 50% of the total power generated in India on its
transmission network. Its subsidiary company, Power System Operation Corporation Limited (POSOCO) handles
power management for Power Grid. POWERGRID also operates a telecom business under the name POWERTEL.
 POWERGRID operates throughout India. Its transmission network consists of roughly 101,886 circuit kilometers
and 197 EHVAC and HVDC substations, which provide total transformation capacity of 168,063 MVA.
POWERGRID's interregional capacity is 47,450 MW. Examples of POWERGRID-owned stations include the Vizag
back to back HVDC converter station, the Chandrapur back to back HVDC converter station, the India Sri Lanka
HVDC Interconnection, and the Talcher–Kolar HVDC system.
 Initially, POWERGRID managed transmission assets owned by NTPC, NHPC Limited ("NHPC") and North-Eastern
Electric Power Corporation Limited. In January 1993, the Power Transmission Systems Act transferred ownership of
the three power companies to POWERGRID. All employees of the three companies subsequently became
POWERGRID employees.
 Based on its performance POWERGRID was recognized as a Mini-ratna category-I Public Sector Undertaking in
October 1998 and conferred the status of "Navratna" by the Government of India in May 2008. POWERGRID, as
the Central Transmission Utility of the country, is playing a major role in Indian Power Sector and is also providing
Open Access on its inter-State transmission system.
 Technical Outlook
 In current week, Nifty had lost around -4.54% but against it Power Grid ended on 0.46% positive. It indicates
that strength of stock has not diluted in spite of turbulence in market. Pictorially, we can see the importance
of horizontal line. As per change of polarity earlier resistance point acted as support point.
 From technical pattern perspective, it has formed flag pattern which is a sign of pause in previous uptrend
and thereafter it is likely to resume its earlier uptrend. Furthermore, it has taken support at 21 days moving
average. Recent dip came to end at 38.2% retracement level. It has been believed that lower the retracement
higher the enthusiasm of bulls.
 Apart from price action, other technical factor also support bullishness in stock. The behavior of volume is
testament of rising strength. Momentum oscillator RSI has also crossed its average line.
 Based on technical overview and seeing stocks strength, overall evidences augur well for stock and in falling
market defensive stock will be better bet. So, one can initiate long position for further higher side in few
trading session.
Company POWERGRID
Recommendation Buy
Sector : Power Gen./Dist.
CMP : 141 & Upto 138
Price Potential : 165
Stop Loss (Closing Basis): 130
Mkt Cap (Rs. Cr.): 74,079
TTM EPS (Rs.) 10.43
TTM Sales (Rs. Cr.) 18,636
BVPS (Rs.) 88.6
Reserves (Rs. Cr.) 41,118
P/BV 1.60
PE 13.58
Bloomberg Code : PWGR:IN
Reuters Code : PGRD.NS
TW = Twelve Months
TTM= Trailing 12 months
SEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
Pick of the Week: POWERGRID CORPORATION OF INDIA LTD.
09th Jan, 2016
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2. Pick of the Week: POWERGRID CORPORATION OF INDIA LTD.
09th Jan, 2016
SEBI Certified – Research Analyst Equities I Commodities I Currencies I Mutual FundsSEBI Registered – Research Analyst Equities I Commodities I Currencies I Mutual Funds
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Date: 2016.01.09 16:50:27 +05'30'