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

POWERGRID's revenue is projected to decrease from last year, a development that could lead investors to adopt a more cautious approach. A revenue decline can negatively affect profitability, signaling challenges for the company and making it less attractive for those seeking solid financial performance.

Financial Ratios:

currentRatio 0.889000
forwardPE 13.692158
debtToEquity 141.186000
earningsGrowth -0.059000
revenueGrowth 0.018000
grossMargins 0.977640
operatingMargins 0.513300
trailingEps 15.450000
forwardEps 18.561720

POWERGRID's Forward PE is in an attractive range, meaning its stock price aligns well with earnings and isn't inflated. This creates room for growth, making it a solid investment opportunity for those looking to benefit from potential price appreciation.
Power Grid Corporation of India Limited's high debt-to-equity ratio suggests a heavily leveraged capital structure. The company relies on debt to fund operations, which could heighten financial risks, particularly if economic conditions deteriorate or profitability declines.
Power Grid Corporation of India Limited's low earnings and revenue growth point to a likely decrease in profits. This suggests that the company is facing financial difficulties and may struggle to maintain its current level of profitability.
POWERGRID's positive gross and operating margins suggest strong profitability. These margins reflect effective cost management and revenue generation, indicating that the company is efficiently managing its operations and maintaining financial health.
Power Grid Corporation of India Limited's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that Power Grid Corporation of India Limited's financial performance will improve in the current financial year.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

Price projections for POWERGRID have been revised lower over time, signaling a more cautious outlook from analysts. The gradual downward trend indicates that expectations for the company's growth may be softening.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


A recent buy bias from analysts toward Power Grid Corporation of India Limited indicates strong confidence in the stock's future performance. This could encourage investors to park their money in Power Grid Corporation of India Limited, viewing it as a stable and potentially rewarding investment opportunity with promising long-term growth prospects.