POWERGRID - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 4.1

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📊 Fundamental Analysis Report

• Stock Code: POWERGRID
• Market Cap: ₹2,67,951 Cr
• Current Price: ₹288
• 52W High/Low: ₹345 / ₹247
• EPS: ₹16.8
• Stock P/E: 17.2 vs Industry P/E: 17.6 ✅
• PEG Ratio: 6.93 ❗ (Overvalued vs Growth)
• Book Value: ₹99.2 | P/B Ratio: ~2.9 ✅
• ROE: 17.1% | ROCE: 13.0% 🔶
• Debt to Equity: 1.42 ❗ (High Leverage)
• Dividend Yield: 3.12% 💰
• Quarterly PAT: ₹3,653 Cr (↓15.7%)
• RSI: 49.4 | MACD: 1.16 📈

✅ Positive

• ROE and ROCE reflect solid profitability and capital efficiency.
• Attractive dividend yield of 3.12% supports income-focused portfolios.
• Price near DMA 50 and 200 suggests technical support and stability.
• Positive DII sentiment (+0.84%) indicates domestic institutional confidence.

⚠️ Limitation

• High PEG ratio (6.93) suggests valuation may be stretched relative to growth.
• Debt-to-equity ratio of 1.42 indicates significant leverage.
• Quarterly PAT declined from ₹4,336 Cr to ₹3,653 Cr.
• FII holding dropped by 0.84%, signaling cautious foreign sentiment.

📉 Company Negative News

• Sequential drop in PAT and reduced FII interest may pressure short-term sentiment.

📈 Company Positive News

• Stable earnings with YoY profit growth of 7.07%.
• Strong operational scale and strategic role in India’s power transmission infrastructure.
• MACD and RSI suggest neutral-to-bullish technical setup.

🏦 Industry

• POWERGRID operates in the power transmission sector, a critical infrastructure domain.
• Industry P/E of 17.6 aligns closely with POWERGRID’s, suggesting fair valuation.
• Sector benefits from government investment in grid modernization and renewable integration.

🧭 Conclusion

• Entry Zone: ₹275–₹285 (near support and RSI neutral)
• Long-Term View: Strong fundamentals and strategic importance make POWERGRID a reliable long-term hold. Accumulate on dips with watch on debt levels.