Power Grid Corporation of India stock doubled investor’s wealth in 3 years

Power Grid Corporation of India Limited (PGCIL) has rewarded its shareholders handsomely in recent years. From December 2020 to December 2023, its stock price skyrocketed over 105%, turning an initial investment of Rs 1 lakh into an impressive Rs 2.05 lakh.

This impressive growth is fuelled by several factors, including:

Financial Performance

The company posted a solid second quarter for FY24, with net sales and PBIDT (Excl OI) both exceeding expectations. Net profit also witnessed a healthy increase, climbing 7.25% year-on-year.

Strategic investments in renewable energy 

The company also has secured several key projects to integrate renewable energy sources into the national grid. Notably, the company won a bid to build a new transmission system for the Khavda RE Park in Gujarat, capable of evacuating 7 GW of renewable energy. Additionally, two inter-state transmission system projects under the BOOT model further expand its green energy footprint.

Business Overview 

As India’s leading power transmission company, PGCIL boasts an extensive network of 1,74,113 km of lines and 272 substations with a combined capacity of 4,99,360 MVA. This infrastructure forms the backbone of India’s power transmission system, ensuring reliable and efficient delivery of electricity across the nation.

Overall, Power Grid Corporation of India Limited presents a compelling investment opportunity with its robust financial performance, strategic green energy initiatives, and strong business fundamentals. Its focus on sustainability and alignment with national energy goals further strengthens its position as a leader in the Indian power sector.

Stock Price Movement

Today, the stock opened at Rs 225.05, with a high and low of Rs 226 and Rs 222.55, respectively. The stock is currently trading at Rs 223.75, which increased by 0.61%. The stock has a 52-week high of Rs 226 and a 52-week low of Rs 153.34.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.