Power Grid Corporation of India

Alchemist

Administrator
Staff member
#21



Good Dividends? This company is declaring its FIRST dividend that too on 5th March.

Do you like have some insider information??:rolleyes:

Power Grid has been paying regular dividends for many many years.

In FY 2007, it paid Rs 115 crore as interim dividend and Rs 253.82 as final dividend.

Total dividend being Rs 368.82 crore.

This works out to be around 88 paise per share, on current equity base.

This can be expected to go in the future as the company grows.
 

San Yad

Active member
#22
Power Grid Stock

Hi All,

I have been watching power grid for some time and and most of the time it is falling. I don't know why except market fall? it came down from 101 to 86.

What you think that one should take entry in this stock?

rgds,
 
#23
Power Grid Corporation

Hi I am interested to buy a lot of Power Grid Corporation.

So please let me know what will be the right price to enter; that is how much of downside is left in both these stocks.

Thanking you,

Dev:)
 

vasa1

Well-known member
#24
Hi I am interested to buy a lot of Power Grid Corporation.

So please let me know what will be the right price to enter; that is how much of downside is left in both these stocks.

Thanking you,

Dev:)
As Alchemist has posted elsewhere, there is no urgency to invest with all the uncertainties in the world.
 

ams

New member
#25
entry for 6 months

Alchemist .... could you plz update this thread..

Its rising for last 4-5 months @ 10% or so...

Is it ok to enter this scrip for 6 months period ?
 

Alchemist

Administrator
Staff member
#26
Alchemist .... could you plz update this thread..

Its rising for last 4-5 months @ 10% or so...

Is it ok to enter this scrip for 6 months period ?
Power Grid is a stable stock, it behaves like an FMCG stock.

It barely moves up or down.

Post-listing, the stock has made an all-time high of 167.5 and all-time low of 52.

Compared to most Nifty stocks, Power Grid hardly moves.

If you buy at current prices, you shouldn't expect any major upside or downside.

If you want to buy this stock, I would suggest you wait for slightly lower levels of 75-82.
 

man4urheart

Well-known member
#27


We should see the impending C wave.

Divergence confirms same.

Power stocks look highly bearish!

Exit them and re enter after 61.8% correction( do your math)
 

vasa1

Well-known member
#28


We should see the impending C wave.

Divergence confirms same.

Power stocks look highly bearish!

Exit them and re enter after 61.8% correction( do your math)
In the case of Power Grid, this works out to ~ Rs. 42 and for Tata Power we're talking ~ Rs. 500. Sorry, but I feel this just won't happen.

Interestingly, there are no time-frames specified.
 

paran

Active member
#29
Is anybody tracking this stock? It really sucks. I missed it to sell at 125 in the beginning of Aug'09 and after that almost for the past 4months not moving anywhere.:eek:
What could be the fundamental target for FY11 if I wish to continue to hold this?
 

San Yad

Active member
#30
Is anybody tracking this stock? It really sucks. I missed it to sell at 125 in the beginning of Aug'09 and after that almost for the past 4months not moving anywhere.:eek:
What could be the fundamental target for FY11 if I wish to continue to hold this?
keep stoploss of Rs 98 and hold it for long term.. it is a long term counter which needs patience..

In short term you will earn nothing in the counter.
 

Atiker

Active member
#31
What does the technicals say now?

Mandeep Bhai what does your Elliot analysis predict?

Fundamentally it's a plus, need a technical reason to dip in.

It has been consolidating for a pretty long time.

I am contemplating moving the profits from the September's-plethora-of-IPOs proceeds to it.
 

man4urheart

Well-known member
#32
In the case of Power Grid, this works out to ~ Rs. 42 and for Tata Power we're talking ~ Rs. 500. Sorry, but I feel this just won't happen.

Interestingly, there are no time-frames specified.
Well it is 1 year since I made the post, last time.

but anybody who sold must not had regretted.

For now chart is pretty interesting!



Elliot analysis is not possible as not much history, Wait for breakout on either side to join the party!
 

man4urheart

Well-known member
#33
Power Grid has 26% Net profit margin, but its balance sheet is having 35000 crores Debt, with annual 1500 crore Interest Payments.

It earn net 2000 Crores.

Debt is 17 Times of its Annual Earnings, which means it will take 17 years at this earnings to pay off debt. If all earnings are just used to pay off debt.

Cash balance is 3200 crores and Investments of 1500 crores.

If you look at Capital Expenditure it is huge: 10,000 crores a year.

You invest so much in infrastructure, just to earn 2000 crores. Not a good business.

Interesting is they raised new 7000 crores loan and earned 2000 crores. All earned is sowed back = 10,000 crores in Capital Expenditure.

They are in endless cycle of debt.

Now Govt is back disinvesting with new shares to public in Nov 2010.

I won't touch this company.
 
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#34
Power Grid FPO

Power Grid FPO

Opens: 09 November 2010.
Closes: 12 November 2010.

The company has issued an advertisement stating there will be discount for retail investors.
 
#35
Should we go for FPO?

If it is priced below 90 for retailers, I would like to go for it for a possible target of 106, 110 from it reversed last month.

If it is priced above 100, I thinkd it is unattractive & go in NTPC / NMDC way.
 

man4urheart

Well-known member
#39


We are near breakout, FPO price matches the targets on chart!

Rise is capped by 61.8% resistance! and it is the one year resistance!

Should be a good short or just buy a put option.

Looks like price is going to drop below the FPO price, same as MMTC dis investment.

CAPEX is never good for a company, they are also committing for a big capex.

http://www.thehindubusinessline.com/businessline/blnus/03071206.htm

Power Grid lines up Rs 22,650 cr capex for 12 projects
As at September 30, 2010, PGCIL will utilise the amount for projects that will strengthen existing transmission lines or grids and projects for establishing new transmission lines connecting new generating plants. The transmission projects are expected t o enhance the length of our transmission system by 18,711 circuit kilometres.
Here is how FPO money will be utilized

http://www.thehindubusinessline.com/iw/2010/11/07/stories/2010110751081700.htm

The issue size is Rs 8,400 crore (at current price) with part-disinvestment, part-fresh infusion. Out of the fresh equity proceeds (Rs 4,200 crore at current market price), around Rs 3,800 crore is to be deployed to fund the equity portion for 13 transmission projects which is expected to enhance the transmission network by 18,711 circuit km (ckm).
So Net money required = 22650
Money to be used from FPO = 3800
Where will rest = 22650-3800 = 19850 Crores gonna come from? DEBT?
 
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Atiker

Active member
#40
its balance sheet is having 35000 crores Debt, with annual 1500 crore Interest Payments.

It earn net 2000 Crores.

Debt is 17 Times of its Annual Earnings, which means it will take 17 years at this earnings to pay off debt. If all earnings are just used to pay off debt.
Can we compare it with banks/lending stocks?

Is taking debt, not a sort of leverage?

The sales/revenues are assured as power distribution is essential (unless we go back to stone age) and also there is no alternative to PGCIL in this field.

What matters is the returns on the debt.

What say ?
 
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