Power Grid Corporation of India
Market Cap
₹1.3t
Last Updated
2021/06/13 12:11 UTC
Data Sources
Company Financials +
Executive Summary
Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued established dividend payer.
Similar Companies
Share Price & News
How has Power Grid Corporation of India's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 532898 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 532898's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
8.9%
532898
5.0%
IN Electric Utilities
1.7%
IN Market
1 Year Return
47.5%
532898
145.9%
IN Electric Utilities
67.7%
IN Market
Return vs Industry: 532898 underperformed the Indian Electric Utilities industry which returned 145.9% over the past year.
Return vs Market: 532898 underperformed the Indian Market which returned 67.7% over the past year.
Shareholder returns
| 532898 | Industry | Market | |
|---|---|---|---|
| 7 Day | 8.9% | 5.0% | 1.7% |
| 30 Day | 7.6% | 19.5% | 8.9% |
| 90 Day | 9.9% | 40.5% | 10.6% |
| 1 Year | 57.7%47.5% | 159.1%145.9% | 70.3%67.7% |
| 3 Year | 45.6%24.1% | 130.1%98.8% | 40.9%34.0% |
| 5 Year | 92.0%57.0% | 206.2%155.4% | 97.5%82.6% |
Long-Term Price Volatility Vs. Market
How volatile is Power Grid Corporation of India's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Power Grid Corporation of India undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 532898 (₹246.3) is trading below our estimate of fair value (₹546.53)
Significantly Below Fair Value: 532898 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 532898 is good value based on its PE Ratio (10.9x) compared to the Indian Electric Utilities industry average (18.6x).
PE vs Market: 532898 is good value based on its PE Ratio (10.9x) compared to the Indian market (21.7x).
Price to Earnings Growth Ratio
PEG Ratio: 532898 is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 532898 is overvalued based on its PB Ratio (1.9x) compared to the IN Electric Utilities industry average (1.5x).
Future Growth
How is Power Grid Corporation of India forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
11.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 532898's forecast earnings growth (11.2% per year) is above the savings rate (6.8%).
Earnings vs Market: 532898's earnings (11.2% per year) are forecast to grow slower than the Indian market (21.1% per year).
High Growth Earnings: 532898's earnings are forecast to grow, but not significantly.
Revenue vs Market: 532898's revenue (5.3% per year) is forecast to grow slower than the Indian market (12.7% per year).
High Growth Revenue: 532898's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 532898's Return on Equity is forecast to be low in 3 years time (18%).
Past Performance
How has Power Grid Corporation of India performed over the past 5 years?
12.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 532898 has high quality earnings.
Growing Profit Margin: 532898's current net profit margins (30.1%) are higher than last year (29.1%).
Past Earnings Growth Analysis
Earnings Trend: 532898's earnings have grown by 12.1% per year over the past 5 years.
Accelerating Growth: 532898's earnings growth over the past year (9.4%) is below its 5-year average (12.1% per year).
Earnings vs Industry: 532898 earnings growth over the past year (9.4%) exceeded the Electric Utilities industry 6.9%.
Return on Equity
High ROE: 532898's Return on Equity (17.5%) is considered low.
Financial Health
How is Power Grid Corporation of India's financial position?
Financial Position Analysis
Short Term Liabilities: 532898's short term assets (₹284.9B) do not cover its short term liabilities (₹315.0B).
Long Term Liabilities: 532898's short term assets (₹284.9B) do not cover its long term liabilities (₹1,593.0B).
Debt to Equity History and Analysis
Debt Level: 532898's debt to equity ratio (206.6%) is considered high.
Reducing Debt: 532898's debt to equity ratio has reduced from 247.6% to 206.6% over the past 5 years.
Debt Coverage: 532898's debt is well covered by operating cash flow (20.6%).
Interest Coverage: 532898's interest payments on its debt are not well covered by EBIT (2.9x coverage).
Balance Sheet
Dividend
What is Power Grid Corporation of India current dividend yield, its reliability and sustainability?
3.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 532898's dividend (3.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.37%).
High Dividend: 532898's dividend (3.65%) is in the top 25% of dividend payers in the Indian market (1.54%)
Stability and Growth of Payments
Stable Dividend: 532898's dividend payments have been volatile in the past 10 years.
Growing Dividend: 532898's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (57.7%), 532898's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 532898's dividends in 3 years are forecast to be covered by earnings (58.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Kandikuppa Sreekant (57 yo)
1.83yrs
Tenure
₹8,842,503
Compensation
Mr. Kandikuppa Sreekant serves as Chairman and Managing Director of Power Grid Corporation of India Limited since August 05, 2019. He serves as Chairman of Powerlinks Transmission Limited since September 2...
CEO Compensation Analysis
Compensation vs Market: Kandikuppa's total compensation ($USD120.75K) is below average for companies of similar size in the Indian market ($USD1.19M).
Compensation vs Earnings: Kandikuppa's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 532898's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: 532898's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Power Grid Corporation of India Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Power Grid Corporation of India Limited
- Ticker: 532898
- Exchange: BSE
- Founded: 1989
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: ₹1.289t
- Shares outstanding: 5.23b
- Website: https://www.powergridindia.com
Number of Employees
Location
- Power Grid Corporation of India Limited
- Saudamini, Plot No. 2
- Sector-29
- Gurugram
- Haryana
- 122001
- India
Listings
Biography
Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India. The company is involved in planning, executing, owing, operating, and maintaining hig...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/13 12:11 |
| End of Day Share Price | 2021/06/11 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.