POWERINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a comprehensive fundamental analysis of POWERINDIA, with a numeric rating and strategic investment guidance. I see you're focused on long-term value and timing an entry, so I’ve weighed profitability, capital efficiency, valuation, and business durability to give you a clear verdict.

📊 Fundamental Analysis of POWERINDIA

🔍 Core Financials

Profitability

PAT Qtr: ₹132 Cr vs ₹184 Cr — sequential decline, but YoY growth is explosive (↑1,163%), suggesting operational leverage or one-time gains.

EPS: ₹116 — solid earnings base.

ROE: 13.8%, ROCE: 19.4% — decent, though not exceptional for a high-growth infra-tech player.

Leverage & Liquidity

Debt-to-equity: 0.02 — virtually debt-free, excellent financial health.

Dividend Yield: 0.03% — negligible, reinvestment-focused.

Cash Flow

Operating cash flows are stable, supported by strong execution in grid automation, renewables, and digital substations.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 171 Extremely high vs industry PE of 49.5 — significantly overvalued

P/B Ratio ~20.5 Very high — reflects market confidence, but not backed by book value

PEG Ratio 5.95 Elevated — growth not justifying price

Intrinsic Value ~₹16,000–₹17,000 Below current price — limited upside

⚡ Business Model & Competitive Edge

Segment Leadership: Focused on smart grid, e-mobility infrastructure, and digital substations — high-growth niches.

Moat: Technology integration, ABB legacy, and deep industrial partnerships.

Growth Drivers

Government push for smart grids and renewables.

Electrification of transport and industrial automation.

Strong export potential and digital energy solutions.

📈 Technical & Entry Guidance

Current Price: ₹19,386

DMA 50/200: ₹19,413 / ₹16,421 — bullish trend, but near resistance.

RSI: 47.3 — neutral zone.

MACD: 0.48 — flat momentum.

🎯 Entry Zone

Ideal Buy Range: ₹17,000–₹18,000 — wait for correction.

Stop Loss: ₹16,000

Target: ₹21,000–₹22,000 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong sector tailwinds and tech moat justify long-term holding.

Avoid fresh entry at current price unless it dips to suggested zone.

Growth Triggers: Smart grid adoption, EV infra rollout, and export expansion.

⭐ Fundamental Rating

4.1

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