Credit Suisse starts covering JSW Energy, Power Grid with 'outperform'

Credit Suisse has started covering domestic power companies Power Grid Corporation of India and JSW Energy with 'outperform' ratings.

"Domestic coal production, auction of captive coal blocks and weak global coal prices have mitigated fuel price and availability concerns. In addition to this, strong balance sheets enabling these companies to benefit from likely consolidation and they may not be hampered by unviable bids and tariff disputes," the financial services company said on Friday.

For the nine months ended December 2014, Power Grid Corporation India registered net profit of Rs 3,566.69 crore, up 7.38 per cent, against Rs 3,321.58 crore in the corresponding quarter a year ago.

Bottom line of JSW Energy also jumped 101.75 per cent year-on-year to Rs 760.26 crore during April-December 2014 period.

Power Grid and JSW Energy shares jumped 0.14 per cent and 0.54 per cent to Rs 139.70 and Rs 111.65, respectively, on Friday.

(With inputs from Reuters)