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

Power Grid Corporation of India Limited'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 0.000000
forwardPE 16.621489
debtToEquity 137.073000
earningsGrowth -0.042000
revenueGrowth -0.027000
grossMargins 0.979610
operatingMargins 0.562790
trailingEps 16.670000
forwardEps 21.270000

POWERGRID'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.
Power Grid Corporation of India Limited's elevated debt-to-equity ratio suggests the company is highly leveraged, meaning it has significant debt compared to equity. This can be risky, particularly if Power Grid Corporation of India Limited's cash flow or profits decrease, making it harder to meet debt obligations.
POWERGRID's low growth in both earnings and revenue indicates potential profit shrinkage. This downward trend could be a sign of weakening financial health, signaling challenges for the company's future profitability.
Positive gross and operating margins for POWERGRID demonstrate the company's profitability. These margins reflect strong financial performance, with efficient operations contributing to the company's ability to generate consistent profits.
Power Grid Corporation of India Limited's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that Power Grid Corporation of India Limited is likely to outperform its previous year's financial performance.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

POWERGRID's price has consistently been situated near the lower end of expected values. This ongoing trend may reflect investor skepticism about the company's growth potential and overall performance.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


Analysts' recent buy bias toward POWERGRID suggests the stock is gaining favor as a strong investment choice. This optimism could drive more investors to see POWERGRID as a smart place to invest, further bolstering confidence in the company's long-term growth and potential returns.