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

Investors may be wary of Power Grid Corporation of India Limited as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.

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

POWERGRID'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.
POWERGRID's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
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 indicate a profitable and efficient business model. These metrics highlight the company's ability to generate income while controlling operational costs, reflecting strong financial performance.
Power Grid Corporation of India Limited's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.

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 for POWERGRID signals that the stock is considered a favorable investment. This outlook might prompt investors to allocate funds to POWERGRID, seeing it as a solid and profitable choice to park their money and potentially benefit from the company's long-term growth.