This power stock jumps 17% in a month — Is more upside ahead? Anil Singhvi answers

Power Grid Share Price: Shares of Power Grid Corporation of India Ltd have seen a sharp run-up in recent weeks, but market expert Anil Singhvi has advised caution at higher levels, citing strong technical resistance near the Rs 300–305 zone.

The stock was trading at Rs 299.15, down 0.53 per cent in the latest session. It has gained 16.58 per cent in the past month and is up 12.43 per cent so far this year.

Over the past year, the stock has risen 12.36 per cent, while delivering strong long-term returns of 87.06 per cent in three years and 125.48 per cent over five years.

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The company has a market capitalisation of around Rs 2.78 lakh crore and is part of the BSE Sensex index. It operates in the power transmission segment.

Sharp Rally Since February

Power Grid has staged a strong rally since early February. On January 30, the stock was trading around Rs 256.50. From that level, it surged to near Rs 300, marking a rise of about Rs 43.50 or nearly 17 per cent in a short span following a technical breakout.

Singhvi said the stock has been a star performer in the recent run-up, but warned that the Rs 300–305 range is a crucial resistance area. According to him, since May 2025, the stock has stalled five times in this zone and witnessed corrections of 5.25–6.5 per cent within a week of hitting these levels.

“Fresh buying should be considered only if the stock closes decisively above Rs 306,” Singhvi said. He added that traders holding long positions should consider booking profits with Rs 306 as a closing stop loss. At current higher levels, he recommended disciplined trading and cautioned against aggressive fresh entries unless a clear breakout is confirmed.

Fundamental Triggers Behind the Rally

Singhvi also pointed to improving fundamentals behind the recent upmove. The company has increased its planned capital expenditure from Rs 28,000 crore to Rs 32,000 crore, which has boosted investor confidence. Rising power demand, especially from data centres, has further strengthened the growth outlook.

He added that short covering and a catch-up rally in PSU power stocks have also contributed to the recent gains in Power Grid.

Power Grid Q3 FY26 Results

On the earnings front, Power Grid reported an 8 per cent year-on-year rise in consolidated net profit to Rs 4,185 crore in the December 2025 quarter, driven by higher income. Total income rose 7 per cent year-on-year to Rs 12,599 crore.

As of January 2026-end, the company had “works in hand” worth Rs 1,45,500 crore, indicating a strong order pipeline. During the quarter, it secured its first battery energy storage system (BESS) project at Kalikiri in Andhra Pradesh under the build-own-operate model through tariff-based competitive bidding.

As of January 29, 2026, Power Grid and its subsidiaries had total transmission assets of 1,83,174 circuit kilometres of transmission lines, 287 substations and transformation capacity of 5,99,016 MVA. The company maintained an average transmission system availability of 99.84 per cent during the first nine months of FY26.

Capital expenditure stood at Rs 26,761 crore, while assets worth Rs 12,915 crore were capitalised on a consolidated basis during 9MFY26. Gross fixed assets crossed the Rs 3 trillion milestone for the first time, reaching Rs 3,04,336 crore as of December 31, 2025.

What Brokerages Say

Global brokerage CLSA has maintained an “Accumulate” rating on Power Grid, though it cut its target price to Rs 324 from Rs 342. Meanwhile, JP Morgan maintained an “Overweight” rating and raised its target price slightly to Rs 319 from Rs 317.

The brokerage views suggest moderate upside from current levels, supported by steady earnings visibility and strong asset growth.

Power Grid remains fundamentally strong with stable earnings, a robust order book and rising capex. However, as Singhvi cautions, the Rs 300–305 zone is a key hurdle. Investors may watch for a decisive close above Rs 306 for fresh momentum, while existing investors may consider booking profits at higher levels.