BSE:532898

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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


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

532898IndustryMarket
7 Day8.9%5.0%1.7%
30 Day7.6%19.5%8.9%
90 Day9.9%40.5%10.6%
1 Year57.7%47.5%159.1%145.9%70.3%67.7%
3 Year45.6%24.1%130.1%98.8%40.9%34.0%
5 Year92.0%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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/13 12:11
End of Day Share Price2021/06/11 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.