Power Grid Corporation Ltd. has announced its second quarter result (ending September 2010). It has reported net profit of Rs.651 crore against Rs.460 crore last quarter, a strong growth of 41.52% was seen on yearly basis (Year on year). Its total revenue boosted 25.04% to Rs.2,127 crore from Rs.1,701 crore (YoY). Also its average yearly earnings per share (EPS) was found to be Rs.5.22 per share, as compared to June 2010. Power Grid’s price-to-earnings (P/E) share ratio was 19.93 (neutral stock). The latest book value of the company announced is Rs.37.88 for a share. At current market value, the price to book value ratio of the company was at 2.75. The dividend yield was calculated as 1.44%.
Our View: As the net profit has jumped 41.52%, the stock has not done any retraces with the earnings. We will advice investors to keep a keen watch on the stock if it gains 111 levels with strong momentum then one can go long on this otherwise stay away.