Powergrid shares were trading over 2% in Thursday's trade after brokerage house CLSA maintained a 'buy' call on the stock.
CLSA raised its target to Rs 225 from Rs 215 earlier. The brokerage is bullish on attractiveness to ESG investors and inexpensive valuations.
Following the news, shares of Powergrid opened at Rs 194.95 and earlier fell 2.34% to the intraday low of Rs 191.6. However, shares erased early losses and later climbed 2.1% to an intraday high of Rs 195.30 as against the last closing of Rs 191.20.
Shares of Powergrid trade higher than 5, 20, 50, 100 and 200-day moving averages.
The stock price of Powergrid has risen 0.2% in one week and 3% in one month and 2.6% in a year's period. Market capitalisation of the company stood at Rs 1.01 lakh crore today. The stock touched a 52-week high of Rs 211.10 and a 52-week low of Rs 129.75.
CLSA said that the company announced a dividend of Rs 5 per share versus their estimate of Rs 6.50-7 per share. The brokerage added, " However, we are confident in our FY21 dividend estimate of Rs 11.50 per share."
The brokerage expects the company to declare more interim dividend in Q4 and added that company is well on track to achieve capitalisation.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today