Shares of Power Grid Corp. hit an all-time high on Wednesday after it received a letter of intent to establish an interstate transmission system project in Gujarat.
The project comprises setting up an inter-state transmission project for evacuation of an additional 7 gigawatts of power from Khavda renewable energy park under Phase III Part B on a build, own, operate and transfer basis, according to an exchange filing on Tuesday.
The project also includes establishment of a new switching station in Ahmedabad, three transmission lines and extension work at Navsari and Halvad substations, it said.
Powergrid's stock rose as much as 1.69% during the day to Rs 226.05 apiece on the NSE. It pared gains to trade 0.31% higher at Rs 223 apiece compared to a 0.36% advance in the benchmark NSE Nifty 50 as of 11:16 a.m.
It has risen 38.98% on a year-to-date basis. The total traded volume so far in the day stood at 2.7 times its 30-day average. The relative strength index was at 76, indicating that the stock may be overbought.
Twelve out of the 19 analysts tracking Powergrid have a 'buy' rating on the stock, four recommend 'hold', and three suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 41.8%.
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