Power Grid ... Predict... Whats the target today ?

[mail2kamaal]

Hi all,

I am long term investor, i recently alloted Power grid shares..should i book profit at this level or hold ?

book profit at this level. Re buy at 80-85 level. it will go down sure in next week.

 

[n_datar]

book profit at this level. Re buy at 80-85 level. it will go down sure in next week.

I guess for a long term investor one can hold for the new 2-3 years to see the realizations in earnings of the mega power expansion plans.
Regards
Nikhil

 

[mail2kamaal]

I guess for a long term investor one can hold for the new 2-3 years to see the realizations in earnings of the mega power expansion plans.
Regards
Nikhil

but if we r gettimg profit at current time and we can take at lower level , i think its good choice to book profit...

 

[rajaram.dilipkumar]

but if we r gettimg profit at current time and we can take at lower level , i think its good choice to book profit...

it doesnt matter whether you are a longterm investor or short term , if you have made a 100% ROI then dont hesitate to book atleast 50% of your holdings..

 

[nitinku5021a]

Booked profit fully @ 104/- . Will enter at lower level

-Nitin-

 

[mail2kamaal]

Right said M8. i m agree 100%. Investment doesnt mean only buy & hold. It has major part " Book Profit " too. 100% means huge return. No doubt..

 

[ayurakshapad]

Hello sir,
do u think power grid cn cm upto 90 in next week?
coz i hv put [email protected]
ltp- 3.55
bt want to sell wen it will be in cash around 90-92,coz it will give me gud pro

 

[chintan786]

Fundamental analysis of PGCIL

In this kind of a scenario much higher valuations could be justified. For FY09 Power Grid should turn in earnings per share of Rs 4 and a book value of something like Rs 35. Rs 80-85 should be the listing price, I wont be surprised if we saw Rs 100 on listing today on Power Grid that would be doubling from its IPO price. But even if it goes to Rs 100 hypothetically, Rs 100 on a book of something like Rs 35 in 09 gives it about 2.7 times-2.8 times book.

If you look at the entire peer group no direct comparables as such but the peers set is trading at a price to book of close to 3.5 times, 3.25-3.5. And even if Power Grid grows to Rs 100 it would still be trading at a fairly steep discount to some of its peers set. It would be getting on a Rs 4 earnings per share, a price earnings multiple in FY09 for 25 times that too is at a discount to most of the utilities which are now trading between 32-35 times 09.

 

[n_datar]

Right said M8. i m agree 100%. Investment doesnt mean only buy & hold. It has major part " Book Profit " too. 100% means huge return. No doubt..

Hi,

In my experience where I have booked profit in such strong scripts I have not been able to re-enter at lower level (as lost sight in between while the scrip climbed up the price and overshoot its earlier highs).

I had similar experience in PFC so from my point of view, unless we can keep a close eye of daily prices, one should just hold it and forget it for 1 year period.

Regards
Nikhil