Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Regulated Electric

Power Grid Corporation of India Limited, an electric power transmission utility, engages in the transmission of power in India and internationally. The company operates in three segments: Transmission Services, Telecom Services, and Consultancy Services. As of June 30, 2024, it owned and operated 1,77,790 circuit kilometers of transmission lines, as well as 278 substations with transformation capacity of 5,28,761 mega volt ampere. 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 and tariff mechanisms preparation; legal and technical advisory; and market analysis advisory services, as well as renewable energy certificate mechanism implementation. In addition, it provides overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name; and operates electric vehicle charging stations. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was incorporated in 1989 and is based in Gurugram, India.

Revenue projections:

Revenue projections for POWERGRID
Revenue projections for POWERGRID

Investors may react cautiously to news that POWERGRID's revenues are forecasted to be lower than last year's. Such declines are likely to have a negative effect on the company's bottom line, which can lead to concerns about profitability and hinder investor confidence in the company's future performance.

Financial Ratios:

currentRatio 0.000000
forwardPE 17.097334
debtToEquity 141.186000
earningsGrowth 0.084000
revenueGrowth 0.103000
grossMargins 0.978180
operatingMargins 0.586650
trailingEps 15.570000
forwardEps 18.505810

Power Grid Corporation of India Limited's Forward PE is in a strong range, indicating that its stock price compares well with its earnings. The stock is not considered overpriced, leaving ample room for growth and making it a promising option for investors looking for value and future returns.
POWERGRID's high debt-to-equity ratio signals significant reliance on debt to finance its operations. This heavy leverage can increase financial risk, especially if the company faces a decline in revenue or struggles to meet its debt obligations.
With positive gross and operating margins, POWERGRID's profitability is evident. These metrics suggest the company is efficiently managing its expenses while maintaining strong revenue, highlighting a solid financial foundation.
POWERGRID's forward EPS exceeds its trailing EPS, indicating that the company is projected to be more profitable in the current financial year compared to the previous one. This suggests positive growth and improved earnings, signaling an optimistic outlook for POWERGRID's financial performance.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

Over time, Power Grid Corporation of India Limited's price projections have been consistently revised lower. This suggests analysts are becoming less optimistic about the company's future prospects and are adjusting their forecasts accordingly.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


Analysts have shown a buy bias for Power Grid Corporation of India Limited, signaling it as a strong investment choice. This positive outlook could motivate investors to allocate funds to Power Grid Corporation of India Limited, seeing it as a reliable and potentially profitable option, especially in an environment where the stock market is highly scrutinized.