⚠ 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.
POWERINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | POWERINDIA | Market Cap | 1,11,159 Cr. | Current Price | 24,950 ₹ | High / Low | 26,325 ₹ |
| Stock P/E | 126 | Book Value | 1,028 ₹ | Dividend Yield | 0.02 % | ROCE | 19.4 % |
| ROE | 13.8 % | Face Value | 2.00 ₹ | DMA 50 | 22,482 ₹ | DMA 200 | 19,460 ₹ |
| Chg in FII Hold | 1.02 % | Chg in DII Hold | -0.75 % | PAT Qtr | 302 Cr. | PAT Prev Qtr | 264 Cr. |
| RSI | 60.8 | MACD | 858 | Volume | 1,01,581 | Avg Vol 1Wk | 1,21,043 |
| Low price | 10,400 ₹ | High price | 26,325 ₹ | PEG Ratio | 4.38 | Debt to equity | 0.02 |
| 52w Index | 91.4 % | Qtr Profit Var | 120 % | EPS | 189 ₹ | Industry PE | 33.0 |
📊 Core Financials
- Quarterly PAT rose from ₹264 Cr. to ₹302 Cr. (~14% sequential growth, ~120% YoY growth).
- ROE: 13.8% → moderate profitability.
- ROCE: 19.4% → decent capital efficiency.
- Debt-to-equity: 0.02 → virtually debt-free, strong financial health.
- Dividend Yield: 0.02% → negligible shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 126 vs Industry PE 33.0 → extremely overvalued compared to peers.
- P/B Ratio: 24.3 (Current Price ₹24,950 / Book Value ₹1,028) → very expensive relative to assets.
- PEG Ratio: 4.38 → valuation stretched compared to earnings growth.
- Intrinsic Value: Current price significantly above fair value, limited upside potential.
🏢 Business Model & Competitive Advantage
- Power India operates in energy solutions, power infrastructure, and industrial automation.
- Business model relies on demand for power equipment, renewable integration, and industrial modernization.
- Competitive advantage: Strong brand presence, diversified offerings, and global technology partnerships.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹20,000–₹21,000 (given stretched valuations, RSI at 60.8 indicates overbought zone).
- Long-Term Holding: Suitable for investors with high-risk appetite; valuations are extremely stretched despite strong growth momentum.
✅ Positive
- Strong quarterly profit growth (~120% YoY).
- Low debt-to-equity ratio (0.02) ensures financial stability.
- FII holdings increased (+1.02%), showing foreign investor confidence.
⚠️ Limitation
- Extremely high P/E ratio (126) compared to industry average.
- P/B ratio (24.3) indicates significant overvaluation relative to assets.
- Dividend yield is negligible (0.02%).
- DII holdings decreased (-0.75%), showing reduced domestic institutional support.
📉 Company Negative News
- Stock trading near 52-week high of ₹26,325, limiting upside potential.
- MACD at 858 indicates overheated technical momentum.
📈 Company Positive News
- Quarterly PAT increased from ₹264 Cr. to ₹302 Cr.
- Strong FII inflows (+1.02%) reflect foreign investor confidence.
🌐 Industry
- Power equipment industry PE at 33.0, far lower than Power India’s 126, showing sector-wide undervaluation compared to the company.
- Industry growth driven by renewable energy adoption, infrastructure expansion, and industrial automation.
🔎 Conclusion
- Power India is fundamentally strong with solid growth and low debt, but valuations are extremely stretched.
- Dividend yield is negligible, limiting income appeal.
- Best strategy: Avoid fresh entry at current levels; consider accumulation only near ₹20,000–₹21,000 for long-term exposure to India’s power infrastructure growth story.