Check Before You Invest : India Power Corporation Ltd

Q: Which industry/sub-sector does India Power Corporation Ltd belong to?

India Power Corporation Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q: Is India Power Corporation Ltd a good quality company?

India Power Corporation Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is India Power Corporation Ltd undervalued or overvalued?

India Power Corporation Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: 86.88. Price to Book, Current: 1.41, Historic Median: 2.11. Price to Sales, Current: 1.33, Historic Median: 2.25. EV to EBITDA, Current: 14.87, Historic Median: 19.84

Q: Is India Power Corporation Ltd a good buy now?

India Power Corporation Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of India Power Corporation Ltd?

India Power Corporation Ltd revenue growth is -4.3% for FY-2025, which is below its 5-year CAGR of 4.51%, indicating slower growth.

Q: Gross Profit margin of India Power Corporation Ltd?

India Power Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025, which is in line with its 5-year median of 1.7%, indicating stable margins.

Q: Operating Profit Margin of India Power Corporation Ltd?

India Power Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.55% for FY-2025, which is below its 5-year median of 1.69% indicating decreasing margins.

Q: Net Profit Margin of India Power Corporation Ltd?

India Power Corporation Ltd Net Profit Margin is 0.7% for FY-2025, is below its 5-year median of 2.41%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 1.7, Historic Median: 1.7. Operating Profit Margin (%), Current: -0.55, Historic Median: 1.69. Net Profit Margin (%), Current: 0.7, Historic Median: 2.41

Q: Return on Asset of India Power Corporation Ltd?

India Power Corporation Ltd Return on Asset is 0.22%, which is below its 5-year historical median of 0.67%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of India Power Corporation Ltd?

India Power Corporation Ltd Return on capital employed is 2.89% for FY-2025, which is below its 5-year historical median of 3.98%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : India Power Corporation Ltd

Snapshot

Q.1 Which industry/sub-sector does India Power Corporation Ltd belong to?

India Power Corporation Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is India Power Corporation Ltd a good quality company?

India Power Corporation Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is India Power Corporation Ltd undervalued or overvalued?

India Power Corporation Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	86.88
Price to Book	1.41	2.11
Price to Sales	1.33	2.25
EV to EBITDA	14.87	19.84

Q.4 Is India Power Corporation Ltd a good buy now?

India Power Corporation Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of India Power Corporation Ltd?

India Power Corporation Ltd revenue growth is -4.3% for FY-2025, which is below its 5-year CAGR of 4.51%, indicating slower growth.

Q.2 Gross Profit margin of India Power Corporation Ltd?

India Power Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2025, which is in line with its 5-year median of 1.7%, indicating stable margins.

Q.3 Operating Profit Margin of India Power Corporation Ltd?

India Power Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.55% for FY-2025, which is below its 5-year median of 1.69% indicating decreasing margins.

Q.4 Net Profit Margin of India Power Corporation Ltd?

India Power Corporation Ltd Net Profit Margin is 0.7% for FY-2025, is below its 5-year median of 2.41%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	1.7	1.7
Operating Profit Margin (%)	-0.55	1.69
Net Profit Margin (%)	0.7	2.41

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of India Power Corporation Ltd?

India Power Corporation Ltd Return on Asset is 0.22%, which is below its 5-year historical median of 0.67%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of India Power Corporation Ltd?

India Power Corporation Ltd Return on capital employed is 2.89% for FY-2025, which is below its 5-year historical median of 3.98%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of India Power Corporation Ltd?

India Power Corporation Ltd Return on equity is 0.47% for FY-2025, which is below its 5-year historical median of 1.92%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of India Power Corporation Ltd?

India Power Corporation Ltd Cash conversion cycle is -60 days, below its 5-year historical median of -31 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.31	0.28
ROE (%)	0.47	1.92
ROCE (%)	2.89	3.98
Cash Conversion Cycle	-60 days	-31 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of India Power Corporation Ltd?

India Power Corporation Ltd Debt-to-Equity ratio is 0.18, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of India Power Corporation Ltd?

India Power Corporation Ltd Debt to cash flow from operations is 1.82, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of India Power Corporation Ltd?

Q.1 Promoter shareholding and pledge status of India Power Corporation Ltd?

Promoters hold 59.33% of the India Power Corporation Ltd, with 67.42% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does India Power Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of India Power Corporation Ltd vs industry peers?

India Power Corporation Ltd revenue CAGR is 4.51%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-4.3	-
Gross Profit Growth (%)	-73.7	-0.1
Operating Profit Growth (%)	-292.5	0.1
Net Profit Growth (%)	-73.3	-3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.31	0.12
ROE (%)	0.47	2.44
ROCE (%)	2.89	4.39
Cash Conversion Cycle (days)	-59.9	62

Valuation & price assessment

Q.1 Stock return of India Power Corporation Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -6.89% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-6.9%	-6.9%	-35.2%

Q.2 Valuation ratios of India Power Corporation Ltd vs historical?

The current P/E ratio of 0 is lower than its historical median of 86.88, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	86.88	27.37
Price to Book	1.41	2.11	1.82
Price to Sales	1.33	2.25	6.75
EV to EBITDA	14.87	19.84	13.61

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Check Before You Invest : India Power Corporation Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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