Should you buy, sell or hold PowerGrid shares after power transmission firms strong Q4 show, dividend announcement?

PowerGrid shares rose on Monday after the state-run power transmission company staged a strong performance for the quarter ended March 2023. The PowerGrid stock gained by as much as Rs 5.2 or 2.2 per cent to Rs 239 apiece on BSE during the session before settling for the day with a gain of 0.2 per cent at Rs 234.4 apiece on BSE. 

The stock traded in high volumes, as a total of 4.7 lakh shares changed hands on the bourse during the course of the day as against a daily average of 4.5 lakh in the past two weeks, according to provisional exchange data. 

PowerGrid Q4 results

After market hours on Friday, PowerGrid reported a net profit of Rs 4,320.4 crore for the three-month period, growth of 3.9 per cent compared with the corresponding period a year ago. Its revenue grew 14.8 per cent on a year-on-year basis to Rs 12,263.7 crore, according to a regulatory filing.

The company's margin came in at 88 per cent as against 91 per cent for the year-ago period. 

The results met analysts' estimates on all three parameters. According to Zee Business research, PowerGrid's quarterly profit was estimated at Rs 4,222 crore, revenue at Rs 11,874 crore and margin at 87.8 per cent.

PowerGrid dividend

PowerGrid's board recommended a final dividend of Rs 4.75 per share for the financial year 2022-23 — a 47.5 per cent payout given the face value of Rs 10 per share.

What brokerages make of PowerGrid 

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