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 0.733000
forwardPE 15.099896
debtToEquity 145.251000
earningsGrowth -0.004000
revenueGrowth 0.025000
grossMargins 1.000000
operatingMargins 0.572540
trailingEps 16.380000
forwardEps 21.270000

POWERGRID's Forward PE is in a favorable range, suggesting the stock is reasonably priced relative to its earnings. This indicates the stock is not overpriced, providing room for potential growth and making it an attractive option for investors looking for solid value and future upside.
POWERGRID's high debt-to-equity ratio indicates that the company is heavily leveraged. This suggests a significant reliance on debt to finance its operations, which could expose the company to higher financial risks if its cash flow or profitability decreases.
POWERGRID's low earnings and revenue growth suggest shrinking profits. This negative trend could indicate that the company is struggling to maintain its financial performance and may face challenges ahead.
POWERGRID's positive gross and operating margins indicate that the company is performing profitably. These margins reflect efficient cost control and revenue generation, signaling a strong financial foundation for continued success.
POWERGRID's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with POWERGRID anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

The price of POWERGRID has consistently remained close to the lower end of price projections. This trend may reflect uncertainty in the market regarding the company's ability to deliver on growth expectations.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


POWERGRID has been receiving a buy bias from analysts, indicating confidence in its investment potential. This could drive more investors to view POWERGRID as a reliable choice for their money, offering a promising avenue for future growth and financial gains.