POWERINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | POWERINDIA | Market Cap | 80,682 Cr. | Current Price | 18,107 ₹ | High / Low | 22,840 ₹ |
| Stock P/E | 112 | Book Value | 1,028 ₹ | Dividend Yield | 0.03 % | ROCE | 19.4 % |
| ROE | 13.8 % | Face Value | 2.00 ₹ | DMA 50 | 18,429 ₹ | DMA 200 | 17,878 ₹ |
| Chg in FII Hold | 1.02 % | Chg in DII Hold | -0.75 % | PAT Qtr | 264 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 51.3 | MACD | -257 | Volume | 83,729 | Avg Vol 1Wk | 1,54,240 |
| Low price | 10,300 ₹ | High price | 22,840 ₹ | PEG Ratio | 3.91 | Debt to equity | 0.02 |
| 52w Index | 62.3 % | Qtr Profit Var | 406 % | EPS | 163 ₹ | Industry PE | 35.4 |
💹 Core Financials: POWERINDIA shows strong earnings growth with quarterly PAT rising from ₹132 Cr. to ₹264 Cr., a massive 406% variation. ROE at 13.8% and ROCE at 19.4% reflect moderate efficiency. Debt-to-equity ratio of 0.02 indicates a virtually debt-free balance sheet, ensuring financial stability. Dividend yield of 0.03% is negligible, offering minimal income. EPS at ₹163 highlights strong earnings power.
📊 Valuation Indicators: Current P/E of 112 is significantly higher than the industry average of 35.4, suggesting overvaluation. Book value of ₹1,028 against CMP of ₹18,107 implies a P/B ratio of ~17.6, which is expensive. PEG ratio of 3.91 indicates stretched valuation relative to growth prospects. Intrinsic value appears lower than CMP, pointing to limited upside at current levels.
🏢 Business Model & Competitive Advantage: POWERINDIA operates in power and energy solutions, with strong positioning in electrification, automation, and renewable integration. Its competitive advantage lies in advanced technology offerings, global partnerships, and focus on sustainable energy solutions. Rising demand for clean energy and infrastructure modernization supports long-term growth.
💰 Entry Zone Recommendation: Considering DMA 50 at ₹18,429 and DMA 200 at ₹17,878, the stock is trading near its averages, showing consolidation. A favorable entry zone would be ₹16,500–₹17,500 during corrections. Current levels remain overvalued relative to intrinsic metrics.
📈 Long-Term Holding Guidance: POWERINDIA remains a fundamentally strong company with robust growth potential in the energy sector. Long-term investors can hold, while new investors should wait for dips to improve risk-reward balance.
Positive
- Quarterly PAT growth of 406% shows strong earnings momentum.
- Debt-to-equity ratio of 0.02 ensures financial stability.
- Strong positioning in electrification and renewable energy solutions.
- EPS of ₹163 reflects strong earnings power.
Limitation
- P/E ratio (112) is much higher than industry average (35.4).
- P/B ratio (~17.6) indicates expensive valuation.
- Dividend yield of 0.03% offers negligible income.
- PEG ratio of 3.91 suggests stretched valuation relative to growth.
Company Negative News
- Decline in DII holdings (-0.75%) signals reduced domestic institutional support.
- MACD at -257 indicates bearish technical momentum.
Company Positive News
- Increase in FII holdings (+1.02%) reflects strong foreign investor confidence.
- Quarterly PAT doubled from ₹132 Cr. to ₹264 Cr.
- Strong demand outlook in renewable and power infrastructure sectors.
Industry
- Power and energy industry benefits from rising demand for clean energy and infrastructure modernization.
- Industry P/E at 35.4 suggests peers trade at more reasonable valuations.
- Competition from ABB, Siemens, and Schneider Electric keeps pricing pressure high.
Conclusion
⚖️ POWERINDIA is a fundamentally strong company with robust growth potential, low debt, and strong demand outlook. However, valuations are stretched compared to industry peers. Long-term investors can hold, while new investors should look for entry around ₹16,500–₹17,500 to optimize returns.
I can also prepare a peer comparison HTML snippet against ABB India and Siemens India to highlight relative strengths and weaknesses if you'd like.