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 0.88900
forwardPE 14.73365
debtToEquity 141.18600
earningsGrowth -0.05900
revenueGrowth 0.01800
grossMargins 0.97764
operatingMargins 0.51330
trailingEps 15.45000
forwardEps 21.27000

POWERGRID's Forward PE ratio is favorable, indicating that the stock price is well-positioned in relation to its earnings. It is not overpriced, leaving room for growth, which makes it a solid option for investors seeking both stability and future appreciation.
POWERGRID's high debt-to-equity ratio reveals that the company is heavily reliant on debt for financing. This high level of leverage increases the risk of financial strain if profits decline or interest rates rise.
POWERGRID's low earnings and revenue growth suggest that the company's profits may shrink. This trend could indicate underlying financial struggles and pose challenges for POWERGRID's 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.
POWERGRID's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that POWERGRID is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for POWERGRID
Price projections for POWERGRID

Price projections for POWERGRID have been revised down over time, reflecting a less optimistic outlook. Analysts appear to be adjusting their expectations, signaling concerns about the company's ability to sustain its previous growth levels.

Recommendation changes over time:

Recommendations trend for POWERGRID
Recommendations trend for POWERGRID


The recent buy bias for POWERGRID from analysts signals strong confidence in the stock's potential. This positive sentiment could encourage investors to see POWERGRID as a smart place to invest their money, especially those looking for stable, long-term returns in a well-established company.