Buy Power Grid, target price Rs 180: Motilal Oswal

Motilal Oswal has given a buy rating to Power Grid with a target price of Rs 180. The share price moved up by 1.56 per cent from its previous close of Rs 170.15. The stock’s last traded price is Rs 172.80.

Power Grid Corporation of India Ltd., incorporated in the year 1989, is a Large Cap company (having a market cap of Rs 90087.97 Crore) operating in Power sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 9457.40 Crore, down 6.81 % from last quarter Sales of Rs 10148.26 Crore and up 3.03 % from last year same quarter Sales of Rs 9179.63 Crore Company reported net profit after tax of Rs 2000.53 Crore in latest quarter.


Investment Rationale
Breakout from a small inverse H&S pattern on lower time frame. Surpassed its falling supply trend with negation in lower top – lower bottom on weekly scale

Promoter/FII Holdings
Promoters held 51.3 per cent stake in the company as of June 30, 2020, while FIIs held 25.3 per cent, DIIs 18.3 and public and others 5 per cent.