Powergrid's investment in last 2-3 years is delivering good yield for the company. In technical words - its ROeC ( Return on employed capital) is improving in last 2 years. From its low of 122 , this stock has shown steady rise to 232 in its 52 weeks span.
Experts believe that this is a multi bagger stock from here, and one should keep a watch on this. I have raised this discussion in Infirupee forum to get external inputs and suggestions to finalise the stock position in our Long term Portfolio. Please post your queries or suggestions related to this stock
So what do you suggest ? Can I do bulk investments in Powergrid at current price ? What do u expect the price in next 1 to years ?
Power Grid Corporation of India Limited (POWERGRID), is a schedule ‘A’, ‘Maharatna’ Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Companies Act, 1956. POWERGRID is a listed Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public.
It is a World class, Integrated, Global Transmission Company with Dominant Leadership in Emerging Power Markets Ensuring Reliability, Safety and Economy. This company has diversified into Telecom and Consultancy business and is providing services to Domestic and International clients with Global footprints in 21 countries
The present Inter-Regional power transfer capacity of the National Grid is about 103,550 MW which shall be enhanced to 1,18,050 MW by 2022. In 3 years their Net profit has has grown from 8000 cars ( approx) to 10000 crores ( approx)
With 17000 CKMs of transmission line, Power grid is in a take off position to generate steady revenue. It is something like- the runway is ready , now its time for flights to take off.
I personally believe that a 5 to 10 year SIP in this stock will be a great wealth builder. One should blindly start picking Powergrid regularly, every month