What Power Grid Corp of India can do to rekindle interest among investors


What Power Grid Corp of India can do to rekindle interest among investors

After delivering handsome returns in 2016, shares of Power Grid Corp. of India Ltd began trailing the broader markets from mid-2017. Compared to a 15% rise in the Nifty 500 index, the stock lost 8% from July 2017.

The underperformance coincides with the moderation in asset growth. Capitalization, which reflects the project addition, eased from a peak of about ₹31,000 crore per annum in FY16-17 to ₹27,928 crore in FY18. The company aims to capitalize projects worth ₹26,000 crore in FY19.

As India nears universal electricity access, reducing the need for large investments in interstate transmission lines, many fear Power Grid is past its prime asset-addition phase. Raed More

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