⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
POWERGRID - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | POWERGRID | Market Cap | 2,78,135 Cr. | Current Price | 299 ₹ | High / Low | 322 ₹ |
| Stock P/E | 17.7 | Book Value | 106 ₹ | Dividend Yield | 3.02 % | ROCE | 13.0 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 288 ₹ | DMA 200 | 284 ₹ |
| Chg in FII Hold | -0.93 % | Chg in DII Hold | 0.86 % | PAT Qtr | 4,160 Cr. | PAT Prev Qtr | 3,555 Cr. |
| RSI | 55.7 | MACD | 3.83 | Volume | 88,56,782 | Avg Vol 1Wk | 1,75,43,530 |
| Low price | 250 ₹ | High price | 322 ₹ | PEG Ratio | 7.14 | Debt to equity | 1.38 |
| 52w Index | 67.7 % | Qtr Profit Var | 6.83 % | EPS | 16.9 ₹ | Industry PE | 17.9 |
📊 Core Financials
- Revenue Growth: Quarterly PAT increased from ₹3,555 Cr to ₹4,160 Cr (+6.83%).
- Profit Margins: Stable margins supported by regulated transmission business.
- Debt Ratios: Debt-to-equity at 1.38 → moderate leverage for a PSU utility.
- Cash Flows: Strong and predictable due to long-term contracts.
- Return Metrics: ROE at 17.1% and ROCE at 13.0% → healthy efficiency for a utility company.
💹 Valuation Indicators
- P/E Ratio: 17.7 vs Industry PE of 17.9 → fairly valued.
- P/B Ratio: ~2.82 (Price ₹299 / Book Value ₹106) → moderate.
- PEG Ratio: 7.14 → indicates slower growth relative to valuation.
- Intrinsic Value: Current price close to fair value, limited undervaluation.
🏢 Business Model & Competitive Advantage
- Power Grid Corporation is India’s largest power transmission utility.
- Competitive advantage lies in government backing, monopoly-like position, and regulated returns.
- Stable cash flows and strong dividend yield (3.02%) make it attractive for income investors.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Accumulation range between ₹280 – ₹290 (near DMA200 support).
- Long-Term Holding: Suitable for conservative investors seeking steady dividends and exposure to India’s power infrastructure growth.
✅ Positive
- Strong government backing.
- Consistent profitability with rising PAT.
- Healthy ROE (17.1%).
- Attractive dividend yield (3.02%).
⚠️ Limitation
- PEG ratio (7.14) suggests limited growth potential.
- Moderate leverage (Debt-to-equity 1.38).
- Stock trading near 52-week high, limiting immediate upside.
📉 Company Negative News
- Decline in FII holdings (-0.93%).
- Growth rate relatively modest compared to private sector peers.
📈 Company Positive News
- Quarterly PAT growth of 6.83%.
- DII holdings increased (+0.86%).
- Stable dividend payout policy.
🏭 Industry
- Power transmission sector is critical for India’s energy infrastructure.
- Industry PE at 17.9, showing Power Grid is fairly valued compared to peers.
🔎 Conclusion
Power Grid Corporation offers stability, government support, and consistent dividends. While growth prospects are modest, its strong fundamentals and regulated business model make it a reliable long-term holding for conservative investors. Accumulation near support levels is recommended for steady returns.