BSE:540565

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

India Grid Trust operates as an infrastructure investment trust that owns inter-state power transmission assets. More Details


Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has India Grid Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540565 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 540565's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-0.01%

540565

6.0%

IN Electric Utilities

3.4%

IN Market


1 Year Return

31.3%

540565

61.5%

IN Electric Utilities

41.0%

IN Market

Return vs Industry: 540565 underperformed the Indian Electric Utilities industry which returned 59.1% over the past year.

Return vs Market: 540565 underperformed the Indian Market which returned 38.3% over the past year.


Shareholder returns

540565IndustryMarket
7 Day-0.01%6.0%3.4%
30 Day-6.9%22.7%5.6%
90 Day16.7%34.4%16.1%
1 Year46.7%31.3%71.7%61.5%43.5%41.0%
3 Year100.5%37.9%58.2%40.7%29.3%22.7%
5 Yearn/a139.1%103.4%93.7%78.6%

Long-Term Price Volatility Vs. Market

How volatile is India Grid Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is India Grid Trust 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: 540565 (₹130) is trading below our estimate of fair value (₹350.61)

Significantly Below Fair Value: 540565 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 540565's PE Ratio (20.8x) is in line with the IN Electric Utilities industry average.

PE vs Market: 540565 is poor value based on its PE Ratio (20.8x) compared to the Indian market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: 540565 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 540565 is overvalued based on its PB Ratio (1.6x) compared to the IN Electric Utilities industry average (1.2x).


Next Steps

Future Growth

How is India Grid Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540565's forecast earnings growth (12% per year) is above the savings rate (7%).

Earnings vs Market: 540565's earnings (12% per year) are forecast to grow slower than the Indian market (25.4% per year).

High Growth Earnings: 540565's earnings are forecast to grow, but not significantly.

Revenue vs Market: 540565's revenue (7.4% per year) is forecast to grow slower than the Indian market (14.5% per year).

High Growth Revenue: 540565's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540565's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has India Grid Trust performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540565 has high quality earnings.

Growing Profit Margin: 540565's current net profit margins (23.9%) are lower than last year (40%).


Past Earnings Growth Analysis

Earnings Trend: 540565 has become profitable over the past 5 years, growing earnings by 39.1% per year.

Accelerating Growth: 540565's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540565 had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Electric Utilities industry average (6.9%).


Return on Equity

High ROE: 540565's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

How is India Grid Trust's financial position?


Financial Position Analysis

Short Term Liabilities: 540565's short term assets (₹11.8B) exceed its short term liabilities (₹3.0B).

Long Term Liabilities: 540565's short term assets (₹11.8B) do not cover its long term liabilities (₹80.0B).


Debt to Equity History and Analysis

Debt Level: 540565's debt to equity ratio (162.3%) is considered high.

Reducing Debt: 540565's debt to equity ratio has reduced from 1447.1% to 162.3% over the past 5 years.

Debt Coverage: 540565's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: 540565's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

What is India Grid Trust current dividend yield, its reliability and sustainability?

9.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 540565's dividend (9.54%) is higher than the bottom 25% of dividend payers in the Indian market (0.42%).

High Dividend: 540565's dividend (9.54%) is in the top 25% of dividend payers in the Indian market (1.76%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540565 has been paying a dividend for less than 10 years.

Growing Dividend: 540565's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (193.2%), 540565's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 540565's dividends in 3 years are not forecast to be well covered by earnings (141% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Harsh Shah (37 yo)

no data

Tenure

Mr. Harsh Dinesh Shah is Chief Executive Officer at India Grid Trust and its whole-time Director. He was Chief Financial Officer of India Grid Trust since November 7, 2016. Mr. Shah served as Chief Financi...


Leadership Team

NamePositionTenureCompensationOwnership
Harsh Shah
CEO & Whole-Time Directorno datano datano data
Divya Verma
Deputy Chief Financial Officer0.33yrno datano data
Jyoti Agarwal
Chief Financial Officer0.50yrno datano data
Satish Talmale
Chief Operating Officerno datano datano data
Meghana Pandit
Head of M&A and Investor Relations1.92yrsno datano data
Swapnil Patil
Company Secretary & Compliance Officerno datano datano data
Kundan Kishore
Head of Human Resourcesno datano datano data
Bigyan Parija
Chief Design Officerno datano datano data
P. Rao
Senior Vice President – Transmissionno datano datano data
Piyush Pandya
National Head of Substationno datano datano data
Aryan Panchal
Head of IT & Digitalno datano datano data

0.5yrs

Average Tenure

37yo

Average Age

Experienced Management: 540565's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harsh Shah
CEO & Whole-Time Directorno datano datano data
Sanjay Nayar
Non-Executive Director1.75yrsno datano data
Rahul Asthana
Non-Executive Independent Director3.25yrsno data0.017%
₹ 13.0m
Tarun Bhagwandass Kataria
Independent Directorno datano datano data
Ashok Sethi
Independent Director0.42yrno datano data
Pratik Agarwal
Non-Executive Directorno datano datano data

1.8yrs

Average Tenure

61yo

Average Age

Experienced Board: 540565'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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

India Grid Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: India Grid Trust
  • Ticker: 540565
  • Exchange: BSE
  • Founded: 2010
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₹75.824b
  • Shares outstanding: 583.48m
  • Website: https://www.indigrid.co.in

Location

  • India Grid Trust
  • Unit No. 101
  • First Floor, Windsor
  • Mumbai
  • Maharashtra
  • 400098
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INDIGRIDNSEI (National Stock Exchange of India)YesTrust UnitsININRJun 2017
540565BSE (Mumbai Stock Exchange)YesTrust UnitsININRJun 2017

Biography

India Grid Trust operates as an infrastructure investment trust that owns inter-state power transmission assets. It owns a total circuit length of approximately 5,800 circuit kilometers and 4 substations w...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 12:14
End of Day Share Price2021/03/05 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.