Power Grid Corporation of India Ltd fundamental analysis highlights key financial metrics including market capitalization of ₹3,16,686 crore, PE ratio of 20.2, debt-to-equity ratio of 1.42, and return on equity of 19.0% These figures reflect the company’s financial health and current market valuation.
Content:
- Power Grid Corporation of India Ltd Overview
- Power Grid Corporation of India Financial Results
- Power Grid Corporation of India Financial Analysis
- Power Grid Corporation of India Company Metrics
- Power Grid Corporation of India Stock Performance
- Power Grid Corporation of India Peer Comparison
- Power Grid Corporation of India Limited Shareholding Pattern
- Power Grid Corporation of India History
- How To Invest In Power Grid Corporation of India Ltd Share?
- Power Grid Corporation of India Limited Fundamental Analysis – FAQs
Power Grid Corporation of India Ltd Overview
Power Grid Corporation of India Ltd is a state-owned enterprise responsible for transmitting electricity across India. It manages a vast network of high-voltage transmission lines and substations, ensuring efficient and reliable power distribution to various regions.
The company has a market capitalization of ₹3,16,686 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 6.07% below its 52-week high and 89.2% above its 52-week low.
Power Grid Corporation of India Financial Results
Power Grid Corporation’s financial results for FY24 show robust performance with sales at ₹45,843 crore and net profit of ₹15,573 crore. Comparatively, FY22 saw sales of ₹41,616 crore and net profit of ₹16,824 crore.
- Revenue Trend: Power Grid Corporation’s sales grew to ₹45,843 crore in FY24 from ₹41,616 crore in FY22, demonstrating a steady increase in revenue over the years.
- Equity and Liabilities: The company’s equity and liabilities show stable growth, with equity around ₹15,573 crore in FY24. Liabilities, including interest payments of ₹8,773 crore, reflect consistent financial management across FY22-24.
- Profitability: FY24 operating profit remained strong at ₹39,903 crore, slightly up from ₹36,567 crore in FY22. The OPM% stayed high, indicating effective cost management.
- Earnings Per Share (EPS): EPS declined to ₹17.36 in FY24 from ₹24.12 in FY22, reflecting reduced profitability per share despite higher sales.
- Return on Net Worth (RoNW): The company’s RoNW has declined from 24.12% in FY22 to 17.36% in FY24, indicating a gradual decrease in profitability relative to shareholders’ equity, despite stable net profits during this period.
- Financial Position: The company’s financial position remains solid with stable operating profit and manageable debt levels, reflecting strong operational control and financial stability.
Power Grid Corporation of India Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 45,843 | 45,581 | 41,616 |
| Expenses | 5,940 | 6,103 | 5,049 |
| Operating Profit | 39,903 | 39,478 | 36,567 |
| OPM % | 87 | 87 | 88 |
| Other Income | 498.63 | 1,273 | 3,872 |
| EBITDA | 40,973 | 40,502 | 37,648 |
| Interest | 8,773 | 9,634 | 8,036 |
| Depreciation | 13,095 | 13,333 | 12,872 |
| Profit Before Tax | 18,534 | 17,784 | 19,531 |
| Tax % | 15.87 | 12.85 | 14.26 |
| Net Profit | 15,573 | 15,417 | 16,824 |
| EPS | 17.36 | 22.1 | 24.12 |
| Dividend Payout % | 64.8 | 84.84 | 61.15 |
*All values in ₹ Crores
Power Grid Corporation of India Company Metrics
Power Grid Corporation of India Ltd, with a market capitalization of ₹3,16,686 crores, showcases a robust financial profile. The company’s stock price of ₹340 reflects its significant position in the market, supported by strong profitability and attractive returns.
- Market Cap: With a market capitalization of ₹3,16,686 crores, Power Grid Corporation holds a substantial position in the market, indicating strong investor confidence and a prominent role in the Indian power sector.
- Book Value: The book value stands at ₹93.7 per share, reflecting the company’s net asset value. This metric indicates the value attributed to each share based on the company’s total equity, providing insight into its financial stability.
- Face Value: The face value of ₹10.0 per share is a nominal value representing the original cost of the stock. It is used to calculate equity capital and doesn’t directly affect market performance but is essential for understanding share structure.
- Turnover: The asset turnover ratio of 0.18 highlights the company’s efficiency in utilizing its assets to generate revenue. A lower turnover ratio suggests a need for improvement in asset utilization, impacting overall operational efficiency.
- PE Ratio: The price-to-earnings (P/E) ratio of 20.2 reflects the market’s valuation of Power Grid’s earnings. This ratio indicates the price investors are willing to pay per unit of earnings, suggesting moderate growth expectations for the company.
- Debt: With a total debt of ₹1,23,516 crores and a debt-to-equity ratio of 1.42, the company maintains a significant level of leverage. This high debt level necessitates careful management to ensure financial stability and minimize risk.
- ROE: The return on equity (ROE) of 19.0% demonstrates the company’s efficiency in generating profits from shareholders’ equity. This high ROE reflects strong financial performance.
- EBITDA Margin: The EBITDA margin of 85.9% indicates a high level of operational efficiency and profitability. This margin reflects the company’s ability to generate earnings before interest, taxes, depreciation, and amortization, highlighting robust cost control.
- Dividend Yield: The dividend yield of 3.32% provides investors with a return on their investment through dividends.
Power Grid Corporation of India Stock Performance
The table illustrates Power Grid Corporation’s strong performance over different periods. Over the past 5 years, the return on investment (ROI) was 24%, reflecting steady growth. In the last 3 years, ROI increased to 35%, and in the past year, it surged to an impressive 86%, showcasing significant recent gains.
| Period | Return on Investment (%) |
| 5 Years | 24% |
| 3 Years | 35% |
| 1 Year | 86% |
Example: Investment Scenario
If Investor A invested ₹1,00,000 five years ago, their return would be ₹24,000 (24% ROI), making their total investment value ₹1,24,000.
Over three years, with a 35% ROI, the same investment would have grown to ₹1,35,000, reflecting accelerated growth.
In the past year, with an 86% ROI, Investor A’s ₹1,00,000 would have increased by ₹86,000, reaching a total of ₹1,86,000.
Power Grid Corporation of India Peer Comparison
Power Grid Corporation of India, with a market cap of ₹310,405.45 Crores, shows strong performance with an 81.86% 1-year return and a solid dividend yield of 3.32%. It competes closely with NTPC in the power sector.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % | ROCE % | Div Yld % |
| 1 | NTPC | 396.35 | 384667.17 | 2.62 | 9.66 | 86.08 | 10.47 | 1.92 |
| 2 | Power Grid Corpn | 333.5 | 310405.45 | 2.33 | 6.72 | 81.86 | 13.21 | 3.32 |
| 3 | Adani Green | 1808.3 | 286581.87 | 5.9 | -1.96 | 90.1 | 9.81 | 0 |
| 4 | Adani Power | 674.05 | 260109 | 0.18 | 5.26 | 135.6 | 32.25 | 0 |
| 5 | Adani Energy Sol | 1113.7 | 133868.07 | 9.22 | 8.02 | 37.78 | 9 | 0 |
| 6 | Tata Power Co. | 405.45 | 129539.18 | 0.48 | -6.57 | 75.41 | 11.13 | 0.47 |
| 7 | JSW Energy | 645.95 | 112997.91 | 2.93 | 8.72 | 86.02 | 8.59 | 0.3 |
Power Grid Corporation of India Limited Shareholding Pattern
The shareholding pattern of Power Grid Corporation of India Ltd shows stable ownership distribution over the past three quarters. Promoters hold a consistent 51.34%, while FII holdings slightly decreased to 28.73% in FY 2024. DII holdings increased to 16.33%, and retail & others saw a marginal rise to 3.6%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 51.34 | 51.34 | 51.34 | 51.34 |
| FII | 28.73 | 29.82 | 30.51 | 32.01 |
| DII | 16.33 | 15.27 | 14.78 | 13.22 |
| Retail & others | 3.6 | 3.57 | 3.36 | 3.43 |
*All values in %
Power Grid Corporation of India History
Power Grid Corporation of India Limited, established on October 23, 1989, as National Power Transmission Corporation Limited, was renamed in 1992 to avoid confusion with NTPC Limited. Initially managing transmission assets from major power generation companies, Power Grid was appointed as the Central Transmission Utility (CTU) in 1998, assuming responsibility for inter-state transmission planning and coordination.
The company expanded its role significantly, including the establishment of the National Load Despatch Centre in 2009 and the Power System Operation Corporation Limited (POSOCO) as a subsidiary to oversee grid management. As a Navratna company from 2008, Power Grid gained enhanced operational autonomy and has undertaken major projects and investments.
In recent years, Power Grid has continued to grow, with notable achievements including the commissioning of several high-profile transmission projects and receiving numerous awards for excellence and corporate governance. The company remains a key player in India’s energy sector, driving significant infrastructure development and contributing to national grid reliability.
How To Invest In Power Grid Corporation of India Ltd Share?
Investing in Power Grid Corporation of India Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Power Grid Corporation of India Ltd shares and place your buy order.
Power Grid Corporation of India Limited Fundamental Analysis – FAQs
Power Grid Corporation of India Ltd’s fundamental analysis shows a market capitalization of ₹3,16,686 crore, a PE ratio of 20.2, a debt-to-equity ratio of 1.42, and a return on equity of 19.0%, indicating its financial stability and market value.
The market cap of Power Grid Corporation of India Ltd as of August 12, 2024, is approximately ₹3, crore. This value reflects the company’s strong market position in the Indian power industry.
Power Grid Corporation of India Limited (PGCIL) is a state-owned enterprise that operates and maintains India’s national electricity transmission network. It ensures the reliable and efficient transfer of power from generating stations to distribution systems across the country.
Power Grid Corporation of India Limited is owned by the Government of India. It operates as a public sector undertaking (PSU) under the Ministry of Power, with the central government holding a majority of its shares.
The main shareholders of Power Grid Corporation of India are the Government of India, which holds the majority stake, and public shareholders including institutional and retail investors. The government’s shareholding is managed through the Ministry of Power.
Power Grid Corporation of India operates in the power transmission industry. It focuses on the transmission of electricity from generation stations to distribution networks, facilitating the flow of electrical power across the country’s grid infrastructure.
Whether Power Grid Corporation is a good buy depends on your investment goals and market conditions. It is generally considered stable due to its essential role in power transmission and steady revenue. However, thorough research and financial analysis are recommended.
To invest in Power Grid Corporation of India Ltd shares, open a trading account with a broker, complete KYC requirements, and place a buy order for the stock through the broker’s platform. Ensure you research the stock beforehand.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
