BSE:532898

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Power Grid Corporation of India

Executive Summary

Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India.


Snowflake Analysis

Established dividend payer and good value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.5%

532898

7.6%

IN Electric Utilities

6.4%

IN Market


1 Year Return

-13.5%

532898

-14.4%

IN Electric Utilities

-14.8%

IN Market

Return vs Industry: 532898 exceeded the Indian Electric Utilities industry which returned -16.3% over the past year.

Return vs Market: 532898 exceeded the Indian Market which returned -17.6% over the past year.


Shareholder returns

532898IndustryMarket
7 Day7.5%7.6%6.4%
30 Day3.4%3.2%9.5%
90 Day-11.3%-9.8%-7.4%
1 Year-9.2%-13.5%-11.1%-14.4%-13.1%-14.8%
3 Year-7.6%-18.2%-10.8%-19.3%-3.7%-8.8%
5 Year34.9%16.0%19.9%3.8%23.7%12.1%

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 (₹169.2) is trading below our estimate of fair value (₹466.77)

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 (8.2x) compared to the Electric Utilities industry average (8.8x).

PE vs Market: 532898 is good value based on its PE Ratio (8.2x) compared to the Indian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 532898 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 532898 is overvalued based on its PB Ratio (1.4x) compared to the IN Electric Utilities industry average (0.7x).


Next Steps

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?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532898's forecast earnings growth (7.3% per year) is above the savings rate (7.2%).

Earnings vs Market: 532898's earnings (7.3% per year) are forecast to grow slower than the Indian market (18% per year).

High Growth Earnings: 532898's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532898's revenue (7.1% per year) is forecast to grow faster than the Indian market (7.1% per year).

High Growth Revenue: 532898's revenue (7.1% 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 (16.7%).


Next Steps

Past Performance

How has Power Grid Corporation of India performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532898 has a large one-off loss of ₹47.4B impacting its December 31 2019 financial results.

Growing Profit Margin: 532898's current net profit margins (29.1%) are higher than last year (28.4%).


Past Earnings Growth Analysis

Earnings Trend: 532898's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: 532898's earnings growth over the past year (12.8%) is below its 5-year average (14.6% per year).

Earnings vs Industry: 532898 earnings growth over the past year (12.8%) underperformed the Electric Utilities industry 16.2%.


Return on Equity

High ROE: 532898's Return on Equity (17.3%) is considered low.


Next Steps

Financial Health

How is Power Grid Corporation of India's financial position?


Financial Position Analysis

Short Term Liabilities: 532898's short term assets (₹207.6B) do not cover its short term liabilities (₹326.0B).

Long Term Liabilities: 532898's short term assets (₹207.6B) do not cover its long term liabilities (₹1,568.1B).


Debt to Equity History and Analysis

Debt Level: 532898's debt to equity ratio (224.8%) is considered high.

Reducing Debt: 532898's debt to equity ratio has reduced from 248.7% to 224.8% over the past 5 years.

Debt Coverage: 532898's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: 532898's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Power Grid Corporation of India's current dividend yield, its reliability and sustainability?

4.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532898's dividend (4.92%) is higher than the bottom 25% of dividend payers in the Indian market (0.82%).

High Dividend: 532898's dividend (4.92%) is in the top 25% of dividend payers in the Indian market (3.37%)


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 low payout ratio (12.1%), 532898's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532898's dividends in 3 years are forecast to be covered by earnings (58.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Kandikuppa Sreekant (56yo)

0.83

Tenure

₹9,291,983

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 ($USD123.34K) is below average for companies of similar size in the Indian market ($USD1.07M).

Compensation vs Earnings: Kandikuppa's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kandikuppa Sreekant
Chairman0.83yr₹9.29m0.000020% 172.1k
Seema Gupta
Director of Finance2.25yrs₹9.43m0.00017% 1.5m
K. S. Murty
Chief Financial Officer0.83yrno datano data
B. N. Bhowmick
Executive Director of Technology Developmentno datano datano data
Satish Chandra
Chief General Manager of Administrationno datano datano data
Divya Tandon
Compliance Officerno datano data0.00029% 2.5m
Vinod Singh
Director of Personnel & Director0.33yrno datano data
Sunil Agrawal
COO and CISO of ERPno datano datano data
R. Chauhan
Chief Manager of MATLno datano datano data
B. Gupta
Chief Manager of TLno datano datano data

0.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 532898's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kandikuppa Sreekant
Chairman0.83yr₹9.29m0.000020% 172.1k
Seema Gupta
Director of Finance2.25yrs₹9.43m0.00017% 1.5m
Divya Tandon
Compliance Officerno datano data0.00029% 2.5m
Vinod Singh
Director of Personnel & Director0.33yrno datano data
Rajeev Chauhan
Executive Director & Director of Projects1.83yrsno datano data
M. Venkatesan
Non-Official Independent Director0.92yrno datano data
Sunil Sharma
Independent Director1.92yrs₹420.00kno data
Tanmay Kumar
Nominee Director0.25yrno datano data
Manoj Mittal
Independent Director2.75yrs₹780.00kno data
Anthiya Mahalakshmi
Non-Official Independent Director1.92yrs₹480.00kno data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 532898's board of directors are not considered experienced ( 1.8 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: ₹860.335b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532898BSE (Mumbai Stock Exchange)YesEquity SharesININROct 2007
POWERGRIDNSEI (National Stock Exchange of India)YesEquity SharesININROct 2007

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 high voltage transmission systems. As of June 30, 2019, it owned and operated 1,53,635 ckt kms of transmission lines, as well as 243 substations with transformation capacity of 3,68,512 MVA. The company also provides consultancy services, including system engineering and feasibility studies, environmental and social impact assessment, design and engineering, contract, project management and construction supervision, owner's and lender's engineer, and other services, as well as engineering, procurement, and construction of transmission projects on turnkey basis. Power Grid Corporation of India Limited offers its consultancy services to state owned utilities, private utilities, central public sector undertakings, and government departments in Afghanistan, Bangladesh, Bhutan, Congo, Ethiopia, Fiji, Nigeria, Nepal, Kazakhstan, Kenya, the Kyrgyz Republic, Myanmar, Pakistan, Senegal, Sri Lanka, Tajikistan, Tanzania, the United Arab Emirates, and Uzbekistan. In addition, it provides overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was founded in 1989 and is based in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 13:08
End of Day Share Price2020/06/04 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.