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INVESTMENT INSIGHTS

Check Before You Invest : Power Grid Corporation Of India Ltd

BSE: 532898 NSE: POWERGRID ISIN: INE752E01010
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Which industry/sub-sector does Power Grid Corporation Of India Ltd belong to?
Power Grid Corporation Of India Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.
Q.2 Is Power Grid Corporation Of India Ltd a good quality company?
Power Grid Corporation Of India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Power Grid Corporation Of India Ltd undervalued or overvalued?
Power Grid Corporation Of India Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Power Grid Corporation Of India Ltd a good buy now?
Power Grid Corporation Of India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd revenue growth is -0.1% for FY-2025 , which is below its 5 year CAGR of 3.9% , indicating slower growth.
Q.2 Gross Profit margin of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Gross profit margin which is the profit after deduction of direct costs, is 70% for FY-2025 , which is below its 5 year median of 70.2% , indicating decreasing margins.
Q.3 Operating Profit Margin of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 85.61% for FY-2025 , which is below its 5 year median of 87.68% indicating decreasing margins.
Q.4 Net Profit Margin of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Net Profit Margin is 33.9% for FY-2025 , is in line with with its 5 year median of 33.9%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 70 70.2
Operating Profit Margin 85.61 87.68
Net Profit Margin 33.9 33.9
Q.5 Return on Asset of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Return on Asset is 5.86%, which is in line with its 5 year historical median of 5.86%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Return on equity is 17.26% for FY-2025 , which is below its historical median of 18.3%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Return on capital employed is 12.89% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Cash conversion cycle is 80 days, below its historical median of 87 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.17 0.17
ROE 17.26 18.3
ROCE 12.89 12.93
Cash Conversion Cycle 80 days 87 days
Q.9 Debt to Equity ratio of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Debt-to-Equity ratio is 1.41 , which is lower with the industry average of 1.61 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Power Grid Corporation Of India Ltd?
Power Grid Corporation Of India Ltd Debt to cash flow from operations is 3.62 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Power Grid Corporation Of India Ltd?
Promoters hold 51.34% of the Power Grid Corporation Of India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Power Grid Corporation Of India Ltd vs industry peers?
Power Grid Corporation Of India Ltd revenue CAGR is 3.94% , compared to the industry median CAGR of 26.03% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 45,792.3 45,895.2
Gross Profit 32,054.4 17,833.9
Operating Profit 39,063 23,369.5
Net Profit 15,521 9,665.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.17 0.31
ROE 17.26 20.12
ROCE 12.89 11.42
Cash Conversion Cycle (days) 80.31 72

Valuation & price assessment

Q.1 Stock return of Power Grid Corporation Of India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.5% 21.8% 22.5% 1.3%
Q.3 Valuation ratios of Power Grid Corporation Of India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 19.16 12.05 32.46
Price to Book 2.89 2.61 1.75
Price to Sales 6.28 5.48 6.05
EV to EBITDA 10.59 9.35 12.85

Check more companies

1. Adani Power
2. NTPC
3. Power Grid Corp
4. Adani Green Energy
5. Adani Energy Solut.
6. Tata Power
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