Power Grid Corporation of India Limited

NSEI:POWERGRID Stock Report

Market Cap: ₹3.1t

Power Grid Corporation of India Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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 (₹329.65) is trading above our estimate of fair value (₹134.36)

Significantly Below Fair Value: POWERGRID is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As POWERGRID is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for POWERGRID. This is calculated by dividing POWERGRID's market cap by their current earnings.
What is POWERGRID's PE Ratio?
PE Ratio19.5x
Earnings₹157.12b
Market Cap₹3.07t

Price to Earnings Ratio vs Peers

How does POWERGRID's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average74.5x
500400 Tata Power
36.6x16.5%₹1.4t
ADANIENSOL Adani Energy Solutions
179.2x51.3%₹963.2b
SJVN SJVN
46.1x20.4%₹459.9b
TORNTPOWER Torrent Power
36.2x13.4%₹811.8b
POWERGRID Power Grid Corporation of India
19.5x7.1%₹3.1t

Price-To-Earnings vs Peers: POWERGRID is good value based on its Price-To-Earnings Ratio (19.5x) compared to the peer average (74.5x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
POWERGRID 19.5xIndustry Avg. 17.2xNo. of Companies14PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: POWERGRID is expensive based on its Price-To-Earnings Ratio (19.5x) compared to the Asian Electric Utilities industry average (17.2x).

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 Ratio19.5x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: POWERGRID is good value based on its Price-To-Earnings Ratio (19.5x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst POWERGRID forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹329.65
₹339.68
+3.0%
15.8%₹426.00₹232.00n/a22
Nov ’25₹322.05
₹331.57
+3.0%
17.5%₹425.00₹219.00n/a21
Oct ’25₹350.80
₹330.41
-5.8%
17.7%₹425.00₹217.00n/a22
Sep ’25₹337.40
₹322.76
-4.3%
17.3%₹400.00₹217.00n/a21
Aug ’25₹361.10
₹323.50
-10.4%
17.0%₹400.00₹217.00n/a22
Jul ’25₹329.60
₹306.64
-7.0%
15.5%₹370.00₹215.00n/a22
Jun ’25₹310.00
₹298.38
-3.7%
17.8%₹370.00₹180.00n/a21
May ’25₹301.85
₹276.45
-8.4%
16.6%₹355.00₹180.00n/a20
Apr ’25₹280.15
₹268.75
-4.1%
16.7%₹320.00₹180.00n/a20
Mar ’25₹287.70
₹268.25
-6.8%
16.7%₹320.00₹180.00n/a20
Feb ’25₹265.80
₹233.00
-12.3%
10.9%₹272.00₹180.00n/a19
Jan ’25₹238.25
₹221.89
-6.9%
9.6%₹260.00₹180.00n/a19
Dec ’24₹210.20
₹217.67
+3.6%
10.1%₹251.00₹177.00₹329.4018
Nov ’24₹200.95
₹204.80
+1.9%
8.2%₹250.00₹177.00₹322.0519
Oct ’24₹199.75
₹201.93
+1.1%
6.4%₹226.00₹177.00₹350.8019
Sep ’24₹189.15
₹195.98
+3.6%
7.9%₹225.00₹157.50₹337.4020
Aug ’24₹188.85
₹191.14
+1.2%
6.6%₹216.00₹157.50₹361.1021
Jul ’24₹191.36
₹189.45
-1.0%
6.6%₹216.00₹157.50₹329.6020
Jun ’24₹174.75
₹188.51
+7.9%
6.2%₹216.00₹157.50₹310.0020
May ’24₹177.94
₹183.49
+3.1%
6.9%₹206.25₹157.50₹301.8520
Apr ’24₹169.28
₹184.76
+9.1%
6.6%₹206.25₹157.50₹280.1520
Mar ’24₹164.18
₹184.71
+12.5%
6.5%₹206.25₹157.50₹287.7021
Feb ’24₹162.41
₹185.00
+13.9%
6.5%₹206.25₹157.50₹265.8021
Jan ’24₹160.28
₹184.39
+15.0%
6.8%₹206.25₹157.50₹238.2520
Dec ’23₹166.43
₹183.45
+10.2%
7.3%₹206.25₹150.00₹210.2020

Analyst Forecast: Target price is less than 20% higher than the current share price.

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