POWERGRID - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | POWERGRID | Market Cap | 2,96,085 Cr. | Current Price | 318 ₹ | High / Low | 325 ₹ |
| Stock P/E | 18.8 | Book Value | 106 ₹ | Dividend Yield | 2.83 % | ROCE | 13.0 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 302 ₹ | DMA 200 | 290 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.14 % | PAT Qtr | 4,160 Cr. | PAT Prev Qtr | 3,555 Cr. |
| RSI | 63.3 | MACD | 6.23 | Volume | 1,00,28,580 | Avg Vol 1Wk | 1,00,18,108 |
| Low price | 250 ₹ | High price | 325 ₹ | PEG Ratio | 7.60 | Debt to equity | 1.38 |
| 52w Index | 91.2 % | Qtr Profit Var | 6.83 % | EPS | 16.9 ₹ | Industry PE | 19.1 |
📊 POWERGRID demonstrates stable fundamentals with strong ROE (17.1%) and moderate ROCE (13.0%). Dividend yield of 2.83% adds steady income for investors. Valuation is fair with a P/E of 18.8, close to the industry average of 19.1. However, the PEG ratio of 7.60 suggests limited growth relative to price, and debt-to-equity of 1.38 indicates moderate leverage. EPS of ₹16.9 and consistent profitability support long-term stability, though upside potential is capped by stretched growth valuations.
💡 Ideal Entry Price Zone: ₹300 – ₹310 (near DMA 50 and valuation comfort).
⏳ Exit Strategy / Holding Period: Long-term investors can hold for 3–5 years, focusing on dividend income. Partial profit booking is advisable near ₹320–₹325 (recent highs), while monitoring debt and PEG ratio for sustained performance.
✅ Positive
- Strong ROE (17.1%) and stable ROCE (13.0%).
- Dividend yield of 2.83% provides steady returns.
- EPS of ₹16.9 with consistent profitability.
- Quarterly PAT growth (₹4,160 Cr vs ₹3,555 Cr).
- FII holdings increased (+0.29%), showing institutional confidence.
⚠️ Limitation
- High PEG ratio (7.60) indicates limited growth relative to valuation.
- Debt-to-equity ratio of 1.38 adds moderate financial risk.
- Upside capped near ₹325 (recent high).
📉 Company Negative News
- DII holdings reduced (-0.14%).
- Growth metrics stretched relative to valuation.
📈 Company Positive News
- Quarterly profit variation +6.83% shows steady growth.
- Stock delivered 91.2% gain over the past year.
🏭 Industry
- Industry P/E: 19.1, showing POWERGRID trades at fair valuation.
- Sector supported by infrastructure and energy demand.
🔎 Conclusion
POWERGRID is a stable, dividend-yielding utility stock with consistent profitability and fair valuation. Long-term investors can hold for steady returns, focusing on dividend income. New entrants should consider entry around ₹300–₹310 for safety. Partial profit booking near ₹320–₹325 is advisable, while monitoring debt levels and PEG ratio to manage risk.