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 projections indicate a decrease from last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 0.625000
forwardPE 15.068587
debtToEquity 150.993000
earningsGrowth 0.096000
revenueGrowth -0.050000
grossMargins 1.000000
operatingMargins 0.494700
trailingEps 20.130000
forwardEps 19.918920

With a current ratio 0.625, POWERGRID's cash reserves and current assets appear insufficient to meet its short-term debt obligations. This suggests a potential liquidity shortfall, raising concerns about how the company will handle immediate financial responsibilities.
Power Grid Corporation of India Limited'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.
POWERGRID's high debt-to-equity ratio points to a heavily leveraged company. With more debt than equity, POWERGRID may face increased financial risk, especially if its earnings or cash flow come under pressure.
POWERGRID'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 strong profitability. The company's ability to control costs while generating revenue indicates efficient operations and a healthy financial position.
POWERGRID's forward EPS is lower than its trailing EPS, signaling that the company is projected to experience reduced profitability this year. This suggests a downward trend in earnings, which could raise concerns among investors about POWERGRID's financial outlook.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

Throughout its recent performance, POWERGRID's price has been consistently close to the lower range of projected values. This suggests that the company may face challenges in achieving higher valuations in the eyes of investors.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


Recent analysis shows a strong buy bias for POWERGRID, encouraging investors to view it as a solid investment option. The positive sentiment surrounding POWERGRID suggests it could be an attractive place to allocate funds, motivating potential investors to consider the stock as a valuable part of their portfolio.