POWERGRID - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.1
| Stock Code | POWERGRID | Market Cap | 2,96,085 Cr. | Current Price | 318 ₹ | High / Low | 325 ₹ |
| Stock P/E | 18.8 | Book Value | 106 ₹ | Dividend Yield | 2.83 % | ROCE | 13.0 % |
| ROE | 17.1 % | Face Value | 10.0 ₹ | DMA 50 | 302 ₹ | DMA 200 | 290 ₹ |
| Chg in FII Hold | 0.29 % | Chg in DII Hold | -0.14 % | PAT Qtr | 4,160 Cr. | PAT Prev Qtr | 3,555 Cr. |
| RSI | 63.3 | MACD | 6.23 | Volume | 1,00,28,580 | Avg Vol 1Wk | 1,00,18,108 |
| Low price | 250 ₹ | High price | 325 ₹ | PEG Ratio | 7.60 | Debt to equity | 1.38 |
| 52w Index | 91.2 % | Qtr Profit Var | 6.83 % | EPS | 16.9 ₹ | Industry PE | 19.1 |
Chart & Trend Analysis:
POWERGRID is trading at ₹318, above both its 50 DMA (₹302) and 200 DMA (₹290), confirming bullish momentum. RSI at 63.3 indicates moderate strength, not yet overbought. MACD at 6.23 shows positive momentum. Bollinger Bands suggest price is near the upper band, reflecting buying interest. Volume (1,00,28,580) is in line with the 1-week average (1,00,18,108), showing steady participation.
Momentum Signals:
- Short-term momentum remains bullish with FII inflows (+0.29%).
- Entry Zone: ₹305–₹310 (support near DMA levels).
- Exit Zone: ₹322–₹325 (resistance near recent highs).
- Trend Status: Trending upward; not consolidating or reversing.
Positive
- Strong ROE (17.1%) and stable ROCE (13.0%).
- EPS of ₹16.9 with consistent profitability.
- Dividend yield of 2.83% adds income appeal.
- Quarterly PAT growth of 6.83% shows earnings momentum.
- Trading near 52-week high (91.2% index return).
Limitation
- PEG ratio of 7.60 suggests limited growth relative to valuation.
- High debt-to-equity ratio (1.38) raises leverage concerns.
- DII holdings declined (-0.14%), showing reduced domestic institutional interest.
Company Negative News
- High leverage remains a structural risk.
- Valuation metrics (PEG) indicate limited upside potential.
Company Positive News
- Strong quarterly profit growth supports fundamentals.
- FII inflows (+0.29%) highlight foreign investor confidence.
- Attractive dividend yield enhances shareholder returns.
Industry
- Industry P/E at 19.1 shows POWERGRID trades fairly valued.
- Sector supported by infrastructure expansion and government initiatives in power transmission.
Conclusion
POWERGRID shows steady technical and fundamental strength, trading above key averages with attractive dividend yield and consistent profitability. Entry near ₹305–₹310 offers a favorable setup, with exits around ₹322–₹325. Long-term investors can hold confidently, while traders can use support/resistance levels for short-term opportunities.