POWERINDIA - Investment Analysis

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

Investment Rating: 3.6

📊 Fundamental Analysis

Strengths

Near-Zero Debt (D/E: 0.02): Financially robust with minimal leverage.

Strong ROCE (19.4%) & Decent ROE (13.8%): Indicates efficient capital use and reasonable shareholder returns.

EPS of ₹116: Solid earnings base.

Massive Quarterly Profit Surge (1,163%): Likely driven by one-off gains or operational leverage.

FII Holding Up (+2.23%): Strong foreign institutional interest.

Concerns

Extremely High P/E (181) vs. Industry P/E (55.2): Valuation is highly stretched.

PEG Ratio of 6.30: Indicates severe overvaluation relative to earnings growth.

Dividend Yield (0.03%): Negligible — not attractive for income investors.

DII Holding Down (-2.07%): Domestic institutions may be booking profits or cautious.

PAT Decline QoQ: From ₹184 Cr to ₹132 Cr — a 28% drop, raising sustainability concerns.

💡 Is It a Good Long-Term Investment?

Only for high-conviction growth investors. While POWERINDIA has strong fundamentals and minimal debt, its valuation is extremely rich. Unless earnings growth sustains at a high pace, long-term returns may be capped.

🎯 Ideal Entry Price Zone

Valuation-Based Entry: ₹16,000–₹17,500 This range is closer to the 200 DMA (₹15,141) and offers a more reasonable entry point.

Aggressive Entry: ₹14,000–₹16,000 If valuation corrects or earnings normalize, this zone provides better long-term upside.

🧭 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: 2–4 years, but monitor earnings closely.

Exit Strategy

Partial Exit near ₹21,000–₹22,000 if valuation remains high without earnings support.

Full Exit if ROE drops below 12% or PEG remains above 6.0 for multiple quarters.

Re-evaluate if RSI crosses 75 or MACD turns sharply negative — could signal exhaustion.

Would you like a breakdown of POWERINDIA’s role in the energy transition or a comparison with peers like Siemens or ABB India?

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