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 0.000000
forwardPE 17.183435
debtToEquity 137.073000
earningsGrowth -0.042000
revenueGrowth -0.027000
grossMargins 0.979610
operatingMargins 0.562790
trailingEps 16.660000
forwardEps 21.270000

Power Grid Corporation of India Limited's Forward PE is in a favorable range, meaning its stock price compares well with its earnings and isn't overpriced. This leaves room for growth, making it a compelling opportunity for investors looking to benefit from potential future gains.
Power Grid Corporation of India Limited's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
POWERGRID's low growth in earnings and revenue indicates that profits could shrink. This signals potential financial difficulties for the company, suggesting that its profitability might be under pressure.
POWERGRID's positive gross and operating margins highlight its profitability and operational efficiency. These strong margins demonstrate the company's ability to control costs while generating substantial revenue, contributing to a healthy financial performance.
POWERGRID's forward EPS exceeding its trailing EPS implies that the company is projected to be more profitable this year. This suggests an improvement in financial performance, with analysts expecting POWERGRID to generate stronger earnings compared to the previous financial year.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

Over time, POWERGRID's price projections have steadily declined, reflecting reduced confidence in the company's future performance. The downward revisions suggest analysts are becoming more conservative in their assessments.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


Analysts' buy bias toward Power Grid Corporation of India Limited suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, Power Grid Corporation of India Limited is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.