Power Grid Corporation share price cracked over 5 percent in the morning trade on February 1, a day after the company released its December quarter earnings.
The state-owned company posted a nearly 14 percent jump in its consolidated net profit at Rs 2,672.03 crore for the December quarter, mainly driven by higher revenues.
The company consolidated net profit was Rs 2,345.97 crore in the quarter ended on December 31, 2018, a BSE filing said.
The company’s income rose to Rs 9,541.13 crore in the third quarter, from Rs 8,878.73 crore a year ago.
The company’s shares slipped though the numbers were along expected lines. If the stock settles in the red, it will be its second consecutive day of losses.
Kotak Institutional Equities has a 'buy' recommendation on the stock with a target price of Rs 235.
"Power Grid reported another quarter of largely predictable earnings with nearly 15 percent YoY growth in PAT. Valuations at 8.1 times P/E and 1.3 times P/B remain attractive; though lack of clarity on the divestment of select assets through InvIT route as well as contentious demand of AGR dues on non-telecom revenues have weighed on stock performance," said Kotak in a report on February 1.
Shares of Power Grid were trading 2.11 percent down at Rs 182.95 on BSE at 1010 hours.