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

Revenues for POWERGRID are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

Financial Ratios:

currentRatio 0.000000
forwardPE 15.036958
debtToEquity 145.251000
earningsGrowth -0.025000
revenueGrowth 0.017000
grossMargins 1.000000
operatingMargins 0.537350
trailingEps 15.990000
forwardEps 21.270000

With POWERGRID's Forward PE in a favorable range, the stock appears reasonably priced compared to its earnings. This suggests that it's not overpriced and there is room for growth, providing an encouraging opportunity for investors seeking future value increases.
POWERGRID's elevated debt-to-equity ratio shows that the company is relying heavily on debt to fund its activities. This high leverage can amplify returns but also heightens financial risks if cash flow becomes constrained.
POWERGRID's low growth in both earnings and revenue indicates a likely decrease in profits. This suggests the company may be facing financial challenges, and investors should be cautious about its future performance.
Positive gross and operating margins for POWERGRID suggest that the company is operating profitably. These margins highlight POWERGRID's efficiency in managing costs while maintaining healthy revenue streams, contributing to its overall financial strength.
Power Grid Corporation of India Limited's forward EPS surpasses its trailing EPS, indicating that the company is expected to be more profitable in the current financial year. This reflects growing confidence in Power Grid Corporation of India Limited's earnings potential, suggesting stronger financial performance compared to the previous year.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

Price projections for POWERGRID have been revised downward over time, signaling decreasing optimism about the company's outlook. Analysts appear to be adjusting their expectations as concerns about future performance grow.

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.