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POWE

Power Grid Corporation of India NSEI:POWERGRID Stock Report

Last Price

₹208.95

Market Cap

₹1.5t

7D

-1.1%

1Y

20.7%

Updated

24 Jun, 2022

Data

Company Financials +
POWERGRID fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health2/6
Dividends5/6

POWERGRID Stock Overview

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

Power Grid Corporation of India Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Power Grid Corporation of India
Historical stock prices
Current Share Price₹208.95
52 Week High₹248.35
52 Week Low₹167.15
Beta0.23
1 Month Change-7.07%
3 Month Change-0.33%
1 Year Change20.68%
3 Year Change34.65%
5 Year Change32.32%
Change since IPO176.94%

Recent News & Updates

Jun 22
Does Power Grid Corporation of India (NSE:POWERGRID) Deserve A Spot On Your Watchlist?

Does Power Grid Corporation of India (NSE:POWERGRID) Deserve A Spot On Your Watchlist?

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Shareholder Returns

POWERGRIDIN Electric UtilitiesIN Market
7D-1.1%-2.5%0.1%
1Y20.7%40.4%-1.7%

Return vs Industry: POWERGRID underperformed the Indian Electric Utilities industry which returned 40.4% over the past year.

Return vs Market: POWERGRID exceeded the Indian Market which returned -1.7% over the past year.

Price Volatility

Is POWERGRID's price volatile compared to industry and market?
POWERGRID volatility
POWERGRID Average Weekly Movement3.8%
Electric Utilities Industry Average Movement5.0%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.8%
10% least volatile stocks in IN Market4.5%

Stable Share Price: POWERGRID is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: POWERGRID's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19898,766Kandikuppa Sreekanthttps://www.powergrid.in

Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India. As of October 31, 2020, it owned and operated 1,68,140 circuit kms of transmission lines, as well as 220 EHV substations with transformation capacity of 4,19,815 MVA. The company also provides consultancy services, including power system planning and techno-economic feasibility studies; environmental and social impact assessment; design and engineering; procurement assistance; project management and construction supervision; asset management; and other services, such as owners’ and lenders’ engineer service; grid code preparation; tariff mechanisms preparation; legal and technical advisory; and market analysis advisory services.

Power Grid Corporation of India Fundamentals Summary

How do Power Grid Corporation of India's earnings and revenue compare to its market cap?
POWERGRID fundamental statistics
Market Cap₹1.46t
Earnings (TTM)₹168.24b
Revenue (TTM)₹416.16b

8.7x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
POWERGRID income statement (TTM)
Revenue₹416.16b
Cost of Revenue₹0
Gross Profit₹416.16b
Other Expenses₹247.92b
Earnings₹168.24b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)24.12
Gross Margin100.00%
Net Profit Margin40.43%
Debt/Equity Ratio181.2%

How did POWERGRID perform over the long term?

See historical performance and comparison

Dividends

5.6%

Current Dividend Yield

49%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is POWERGRID undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for POWERGRID?

Other financial metrics that can be useful for relative valuation.

POWERGRID key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.7x
Enterprise Value/EBITDA7.4x
PEG Ratio-1.8x

Price to Earnings Ratio vs Peers

How does POWERGRID's PE Ratio compare to its peers?

POWERGRID PE Ratio vs Peers
The above table shows the PE ratio for POWERGRID vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average71.4x

Price-To-Earnings vs Peers: POWERGRID is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (71.4x).


Price to Earnings Ratio vs Industry

How does POWERGRID's PE Ratio compare vs other companies in the Electric Utilities Industry?

Price-To-Earnings vs Industry: POWERGRID is good value based on its Price-To-Earnings Ratio (8.7x) compared to the Indian Electric Utilities industry average (28x)


Price to Earnings Ratio vs Fair Ratio

What is POWERGRID's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

POWERGRID PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: POWERGRID is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).


Share Price vs Fair Value

What is the Fair Price of POWERGRID when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POWERGRID (₹208.95) is trading below our estimate of fair value (₹558.39)

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


Price to Earnings Growth Ratio

PEG Ratio: POWERGRID's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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Future Growth

How is Power Grid Corporation of India forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-4.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWERGRID's earnings are forecast to decline over the next 3 years (-4.9% per year).

Earnings vs Market: POWERGRID's earnings are forecast to decline over the next 3 years (-4.9% per year).

High Growth Earnings: POWERGRID's earnings are forecast to decline over the next 3 years.

Revenue vs Market: POWERGRID's revenue (3.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: POWERGRID's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: POWERGRID's Return on Equity is forecast to be low in 3 years time (17.7%).


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Past Performance

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

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: POWERGRID has high quality earnings.

Growing Profit Margin: POWERGRID's current net profit margins (40.4%) are higher than last year (30.4%).


Past Earnings Growth Analysis

Earnings Trend: POWERGRID's earnings have grown by 16.2% per year over the past 5 years.

Accelerating Growth: POWERGRID's earnings growth over the past year (39.8%) exceeds its 5-year average (16.2% per year).

Earnings vs Industry: POWERGRID earnings growth over the past year (39.8%) exceeded the Electric Utilities industry 3.3%.


Return on Equity

High ROE: Whilst POWERGRID's Return on Equity (22.07%) is high, this metric is skewed due to their high level of debt.


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Financial Health

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

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: POWERGRID's short term assets (₹223.8B) do not cover its short term liabilities (₹448.3B).

Long Term Liabilities: POWERGRID's short term assets (₹223.8B) do not cover its long term liabilities (₹1,298.7B).


Debt to Equity History and Analysis

Debt Level: POWERGRID's net debt to equity ratio (174.6%) is considered high.

Reducing Debt: POWERGRID's debt to equity ratio has reduced from 238.6% to 181.2% over the past 5 years.

Debt Coverage: POWERGRID's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: POWERGRID's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


5.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: POWERGRID's dividend (5.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: POWERGRID's dividend (5.62%) is in the top 25% of dividend payers in the Indian market (1.9%)


Stability and Growth of Payments

Stable Dividend: POWERGRID's dividend payments have been volatile in the past 10 years.

Growing Dividend: POWERGRID's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.7%), POWERGRID's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (45.1%), POWERGRID's dividend payments are well covered by cash flows.


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Management

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

1.9yrs

Average management tenure


CEO

Kandikuppa Sreekant (58 yo)

2.83yrs

Tenure

₹6,539,656

Compensation

Shri. Kandikuppa Sreekant serves as Chairman and Managing Director of Power Grid Corporation of India Limited since August 5, 2019 & has been it's Director of operations since June 1 2022 . He serves as Ch...


CEO Compensation Analysis

Compensation vs Market: Kandikuppa's total compensation ($USD83.66K) is below average for companies of similar size in the Indian market ($USD1.25M).

Compensation vs Earnings: Kandikuppa's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: POWERGRID's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: POWERGRID'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 employee growth, exchange listings and data sources


Key Information

  • Name: Power Grid Corporation of India Limited
  • Ticker: POWERGRID
  • Exchange: NSEI
  • Founded: 1989
  • Industry: Electric Utilities
  • Sector: Utilities
  • Implied Market Cap: ₹1.458t
  • Shares outstanding: 6.98b
  • Website: https://www.powergrid.in

Number of Employees


Location

  • Power Grid Corporation of India Limited
  • Saudamini, Plot No. 2
  • Sector-29
  • Gurugram
  • Haryana
  • 122001
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.