Mumbai: Power Grid shares fell for the fifth consecutive day and hit a new one-month low, but analysts say the stock is a good ‘buy’ given the emphasis on capex in the power and transmission sector. Power Grid shares fell 1.36 per cent to a one-month low of Rs 196.95 and ended at Rs 200.15, down 1.21 per cent.

The BSE Power industry index has also fallen 24 points led by National Thermal Power Corporation (NTPC), PGCIL and Tata Power. Analysts said Power Grid Corporation is still rated a buy’ due to ongoing capex in transmission and the government’s emphasis in improving power infrastructure.

“It is a normal breakdown and isn’t much bad. The stock is following a bullish harmonic pattern with a reversal effect. It shares might go down for some time and will again come up,” said a technical analyst from Angel Broking said. He estimated that it might fall to Rs 190-194 but might go up to Rs 210 after its recovery. In the second quarter, Power Grid’s market cap rose 46 per cent to 1,06,149 crores.



Brokerage Prabhudas Lilladher gave an accumulate rating on the stock with a target price of Rs 243 in a report dated November 4. Sales rose 16 per cent in the second quarter while net profit climbed 14.4 per cent. Earnings before interest, depreciation and tax was up 15.5 per cent.