Power Grid Share Price: Power Grid shares surge 4.5% on Goldman Sachs positive outlook

Shares of Power Grid surged by 4.5% on the BSE to a new all-time high of Rs 366.20 after the global brokerage firm Goldman Sachs showed its optimism about the stock, setting a target price of Rs 370 with a buy rating.The government has upgraded the transmission capex estimate to $110 billion. An 8%+ transformation capacity CAGR is projected for the company, with GH2 and PSP integration also considered, according to Goldman Sachs.

The firm expects Power Grid to be the largest beneficiary of the $500 billion+ grid TAM estimate between FY24 and FY50.

On Tuesday, the stock had witnessed a rally after the company announced that it emerged as the successful bidder to establish an inter-state transmission system in Khavda village of Gujarat.The project involves installation of STATCOMs at Khavda Pooling Station 1 (KPS1) and Khavda Pooling Station 3 (KPS3) along with associated bays extension work and will be carried out on a build, own, operate and transfer (BOOT) basis.

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Earlier in the last week too, the company had announced that it had successfully won another bid for the establishment of transmission system in the same area, wherein a new 765/400/220kV (GIS) sub-station at a suitable location near South of Olpad, 765kV & 400kV D/C transmission lines will be established and associated bays extension works at other existing substations will be carried out.

The shares of Power Grid have increased by 81.5% in the last one year while gaining 52% on a year-to-date basis. In the last month alone, the stock went up by 7.4% and 8.44% in the last 2 weeks.

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