Stock In News: Power Grid Corporation

A Delhi HC judgment could, at the least, ensure that mines that were previously classified as reserved for power (or metals) remain so even after the fresh auctions which were necessitated by a Supreme Court order last year that cancelled most captive allotments of coal mines to power and steel companies since 1993. The re-classification of the mines, which has happened in some cases, means that a previous owner who built an end-use plant (a power plant or a steel one), then had the coal mine allotment cancelled, and was hoping to rebid for the same mine, is not eligible to do so. On Wednesday, the Delhi High Court quashed the so-called end use norms for coal mines for two blocks previously allotted to Jindal Steel and Power Ltd (JSPL), after the company complained that the government had arbitrarily changed the rules through a notification after the coal ordinance was issued last year.

Stock In News

Power Grid Corporation reported 18% increase in net profit at Rs 1,228.91 crore in Q3FY15, on the back of rise in income from operations. The company had posted a net profit of Rs 1,042.04 crore in Q3FY14. Total income from operations rose ~18% YoY to Rs 4,353.62 crore in Q3FY15. The company's revenue from transmission business stood at Rs 4,240.05 crore as against Rs 3,527.02 crore in the same period, last fiscal. However, the company witnessed a drop in revenue from its consultancy.

Trading Levels

Power Grid Corporation is currently trading at 148 level with a support level at 142 and 141 while resistance levels are 151 and 155 levels