POWERGRID - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.3

📊 Fundamental Analysis

Power Grid Corporation of India Ltd (POWERGRID) is a Maharatna PSU and India’s largest power transmission utility. It offers a stable and dividend-rich long-term investment profile

Metric Value Interpretation

ROE 17.3% Strong shareholder returns

ROCE 12.9% Solid capital efficiency for a utility

PEG Ratio 5.32 Overvalued relative to growth; caution needed

P/E Ratio 17.6 Fairly valued vs industry average

Dividend Yield 3.84% Attractive for income-focused investors

Debt-to-Equity 1.41 Reasonable for infrastructure-heavy business

EPS ₹16.7 Stable earnings base

📈 Technical & Valuation Insights

Current Price: ₹293

52W High/Low: ₹366 / ₹247

DMA 50 / DMA 200: ₹295 / ₹297 — trading below both, indicating short-term weakness

RSI (45.2): Neutral zone, no strong momentum

MACD (-0.11): Bearish crossover

Volume: Near average, no major accumulation

🔍 Support Zone: ₹278–₹295 🔍 Resistance Zone: ₹300–₹310

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🎯 Ideal Entry Price Zone

For long-term investors, ideal accumulation zones are

₹278–₹290: Near strong support and undervaluation zone

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₹265–₹275: Deep value zone if broader market corrects

Avoid chasing above ₹310 unless there's a confirmed breakout with volume.

🧭 Exit Strategy / Holding Period

If you already hold POWERGRID

Holding Period: 5–10 years for compounding dividend and infrastructure growth

Exit Strategy

Partial Exit: Near ₹360–₹385 if price rallies to 52W high or valuation stretches

Full Exit: If ROE drops below 12% or PEG remains above 5 without earnings growth

Stop-Loss: ₹265 for downside protection

🚀 Long-Term Growth Catalysts

Green Energy Corridors: ₹13GW RE projects in Ladakh and Rajasthan

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International Expansion: 23 countries with global consultancy footprint

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Smart Grid & HVDC: Modernization of India’s grid with AI and automation

Stable Cash Flows: Regulated returns and 99% system availability

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Dividend Consistency: High payout ratio and strong yield

📈 2030 Target Price: ₹838–₹1,061

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📈 2040 Target Price: ₹2,600–₹2,808

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⚠️ Risks to Monitor

PEG Ratio (5.32): Indicates overvaluation; growth must justify premium

FII/DII Outflows: Slight reduction in institutional holding

Tariff-Based Bidding Pressure: May impact ROE if margins compress

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Would you like a dividend reinvestment strategy or a comparison with NTPC and REC for portfolio balancing?

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www.tradingview.com

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www.powergrid.in

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shareprice-target.com

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tradewatch360.com

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www.moneycontrol.com

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