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

With POWERGRID's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

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

Power Grid Corporation of India Limited's Forward PE is in a reasonable range, indicating the stock is priced well relative to its earnings. The stock isn't overpriced, which leaves room for future growth, making it an attractive option for investors seeking value and long-term gains.
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.
Power Grid Corporation of India Limited's low earnings and revenue growth highlight potential profit shrinkage. This suggests that the company may struggle to maintain its financial performance, raising concerns about its future profitability.
Power Grid Corporation of India Limited'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.
Power Grid Corporation of India Limited's forward EPS being higher than its trailing EPS indicates that the company is expected to achieve greater profitability this financial year. This suggests improving earnings and a stronger financial position compared to the previous year's performance.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

POWERGRID's price projections have been revised downward gradually, indicating that analysts are tempering their expectations. This downward shift suggests a more cautious outlook on the company's growth prospects.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


Power Grid Corporation of India Limited has been receiving a buy bias from analysts, signaling strong confidence in the stock's future performance. This positive outlook might drive investors to view Power Grid Corporation of India Limited as an attractive option for their portfolios, positioning the company as a stable and profitable investment choice.