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Last Updated on: 03 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Power Grid Corporation of India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 3, 2024, 9:30 pm

Market Cap 3,06,454 Cr.
Current Price 330
High / Low366/212
Stock P/E19.5
Book Value 99.0
Dividend Yield3.41 %
ROCE13.2 %
ROE19.0 %
Face Value 10.0
PEG Ratio2.75

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Power Grid Corporation of India Ltd

Competitors of Power Grid Corporation of India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aartech Solonics Ltd 268 Cr. 84.288.1/42.097.0 9.920.30 %4.81 %1.64 % 5.00
Voltamp Transformers Ltd 10,437 Cr. 10,30714,800/5,62530.4 1,4010.87 %31.6 %24.3 % 10.0
Transformers & Rectifiers India Ltd (TRIL) 11,186 Cr. 745846/110145 38.90.03 %14.8 %9.33 % 1.00
Power Grid Corporation of India Ltd 3,06,454 Cr. 330366/21219.5 99.03.41 %13.2 %19.0 % 10.0
KEC International Ltd 29,140 Cr. 1,0941,111/58669.1 1900.37 %16.0 %8.80 % 2.00
Industry Average60,051.00 Cr2,098.7377.33290.040.83%13.59%12.61%5.00

All Competitor Stocks of Power Grid Corporation of India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales10,14210,51010,21910,26710,44710,68710,90511,15111,26212,26411,04811,26711,550
Expenses1,2281,6181,2181,4961,4151,9831,6611,7851,3681,4331,7161,5571,375
Operating Profit8,9158,8929,0018,7719,0328,7049,2459,3669,89310,8319,3329,71010,175
OPM %88%85%88%85%86%81%85%84%88%88%84%86%88%
Other Income6533603,720276277737342199500294209263380
Interest2,0471,8822,2161,8851,8452,0911,9602,1873,0122,4752,0572,3412,446
Depreciation3,0733,1123,1123,1953,2863,2793,2953,3173,4073,3143,2663,2773,293
Profit before tax4,4474,2597,3923,9684,1784,0714,3314,0603,9755,3354,2184,3554,816
Tax %24%17%19%15%21%-2%12%10%8%19%15%13%16%
Net Profit3,3683,5265,9983,3763,2934,1563,8013,6503,6454,3233,5973,7814,028
EPS in Rs3.623.796.453.633.544.474.093.923.924.653.874.074.33

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales13,08115,55517,54020,65225,69729,95435,05937,74439,64041,62245,58145,843
Expenses2,2442,5882,6132,4683,2473,9938,1404,8584,7345,7967,0016,531
Operating Profit10,83712,96714,92718,18422,45025,96126,92032,88634,90635,82638,58039,312
OPM %83%83%85%88%87%87%77%87%88%86%85%86%
Other Income9667257316569334,0651,5052,8207694,6922,0891,070
Interest2,5993,2544,0815,0866,2047,3248,7379,5098,1358,0369,6348,773
Depreciation3,4284,0795,1736,1827,7229,23110,54111,60712,03912,87213,33313,095
Profit before tax5,7766,3596,4047,5729,45713,4719,14714,59015,50119,61017,70218,514
Tax %25%28%21%21%21%39%-10%24%22%14%13%16%
Net Profit4,3134,5485,0465,9597,4518,20410,03411,05912,03616,82415,41715,573
EPS in Rs5.244.895.436.418.018.8210.7911.8912.9418.0916.5816.74
Dividend Payout %31%30%21%20%31%33%43%47%52%61%67%67%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)5.45%10.95%18.09%25.04%10.11%22.31%10.22%8.83%39.78%-8.36%1.01%
Change in YoY Net Profit Growth (%)0.00%5.50%7.14%6.94%-14.93%12.20%-12.09%-1.38%30.95%-48.14%9.37%

Power Grid Corporation of India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:6%
3 Years:5%
TTM:0%
Compounded Profit Growth
10 Years:13%
5 Years:8%
3 Years:8%
TTM:2%
Stock Price CAGR
10 Years:16%
5 Years:26%
3 Years:29%
1 Year:55%
Return on Equity
10 Years:17%
5 Years:19%
3 Years:19%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:52 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4,6305,2325,2325,2325,2325,2325,2325,2325,2326,9756,9759,3019,301
Reserves21,77329,46633,20738,73844,63449,19453,85759,46464,70469,27276,05177,84582,760
Borrowings69,23384,22096,243108,545118,988131,503146,376148,270143,232134,696128,584123,516122,568
Other Liabilities17,74822,56226,10226,79726,80939,42541,91643,70642,53940,00840,61540,16840,668
Total Liabilities113,384141,480160,784179,312195,662225,354247,380256,671255,708250,950252,225250,829255,297
Fixed Assets62,56874,25291,191115,094137,678156,198172,740181,112183,726191,773185,437177,761174,178
CWIP35,26550,06953,68145,61138,26437,66937,63135,17724,83812,85413,77218,19723,767
Investments5864232209191,1651,2241,2961,4311,4863,7883,4894,1633,410
Other Assets14,96416,73615,69317,68818,55530,26435,71338,95145,65942,53649,52750,70853,941
Total Assets113,384141,480160,784179,312195,662225,354247,380256,671255,708250,950252,225250,829255,297

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +11,69015,22315,80015,00821,57522,71023,27130,73929,40326,12440,20337,290
Cash from Investing Activity +-22,084-26,639-24,185-21,576-23,836-25,701-18,727-10,733-9,244753-7,138-13,114
Cash from Financing Activity +9,96213,7126,3995,6213,9591,285-2,431-18,806-20,521-28,967-30,450-25,903
Net Cash Flow-4322,295-1,986-9481,698-1,7072,1131,199-362-2,0912,615-1,728

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-59.00-72.00-82.00-90.00-96.00-106.00-120.00-116.00-109.00-99.00-90.00-84.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4238464844444949798111992
Inventory Days
Days Payable
Cash Conversion Cycle4238464844444949798111992
Working Capital Days-254-301-331-271-229-208-156-245-57-62-56-52
ROCE %10%9%8%9%10%10%9%11%12%11%13%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%
FIIs27.87%28.19%29.35%30.25%31.70%32.76%32.30%33.14%32.01%30.51%29.82%28.73%
DIIs8.38%8.42%16.02%15.17%13.79%12.73%13.39%12.55%13.21%14.77%15.26%16.32%
Public12.41%12.05%3.29%3.24%3.17%3.18%2.99%2.95%3.44%3.37%3.58%3.61%
No. of Shareholders7,19,2767,77,0728,04,1527,90,5328,23,2398,11,0748,02,6197,83,2659,31,3669,61,58511,00,85013,17,077

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF250,729,56419.065238.9923,139,1132024-12-02983.57%
Parag Parikh Flexi Cap Fund113,209,9574.92365.5223,139,1132024-12-02389.26%
SBI Nifty 50 ETF84,545,3201.081766.5723,139,1132024-12-02265.38%
SBI S&P BSE Sensex ETF59,611,0231.251245.5723,139,1132024-12-02157.62%
ICICI Prudential Bharat 22 ETF50,750,1728.191060.4223,139,1132024-12-02119.33%
SBI Equity Hybrid Fund38,666,6661.31807.9423,139,1132024-12-0267.11%
HDFC Flexi Cap Fund - Regular Plan30,000,0001.48626.8523,139,1132024-12-0229.65%
UTI Nifty 50 ETF23,139,1131.08483.4923,139,1132024-12-020%
UTI S&P BSE Sensex ETF20,138,5771.25420.823,139,1132024-12-02-12.97%
HDFC Hybrid Equity Fund - Regular Plan18,217,8611.8380.6623,139,1132024-12-02-21.27%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)17.3622.1024.1223.0121.14
Diluted EPS (Rs.)17.3622.1024.1223.0121.14
Cash EPS (Rs.)30.8441.3342.4645.6143.03
Book Value[Excl.RevalReserv]/Share (Rs.)93.70119.01109.31133.68123.66
Book Value[Incl.RevalReserv]/Share (Rs.)93.70119.01109.31133.68123.66
Revenue From Operations / Share (Rs.)49.2965.3459.6675.7772.14
PBDIT / Share (Rs.)44.0558.0653.9769.1564.74
PBIT / Share (Rs.)29.9738.9535.5246.1442.55
PBT / Share (Rs.)19.9325.4928.0029.2227.59
Net Profit / Share (Rs.)16.7722.2224.0122.6020.84
NP After MI And SOA / Share (Rs.)16.7422.1024.1223.0121.14
PBDIT Margin (%)89.3788.8590.4691.2689.73
PBIT Margin (%)60.8159.6059.5360.8958.97
PBT Margin (%)40.4239.0146.9338.5638.24
Net Profit Margin (%)34.0134.0040.2329.8228.89
NP After MI And SOA Margin (%)33.9733.8240.4230.3629.30
Return on Networth / Equity (%)17.8718.5722.0617.2117.09
Return on Capital Employeed (%)13.4612.8112.0211.2010.32
Return On Assets (%)6.206.156.704.704.30
Long Term Debt / Equity (X)1.211.371.501.852.09
Total Debt / Equity (X)1.421.521.771.872.14
Asset Turnover Ratio (%)0.180.170.150.140.14
Current Ratio (X)0.830.910.720.890.68
Quick Ratio (X)0.800.870.690.850.65
Dividend Payout Ratio (NP) (%)50.7645.2451.8256.6728.19
Dividend Payout Ratio (CP) (%)27.5724.2629.3628.3313.75
Earning Retention Ratio (%)49.2454.7648.1843.3371.81
Cash Earning Retention Ratio (%)72.4375.7470.6471.6786.25
Interest Coverage Ratio (X)4.674.204.684.453.56
Interest Coverage Ratio (Post Tax) (X)2.842.582.742.541.97
Enterprise Value (Cr.)373626.62276646.23280879.72238435.32216164.42
EV / Net Operating Revenue (X)8.156.076.756.015.73
EV / EBITDA (X)9.126.837.466.596.38
MarketCap / Net Operating Revenue (X)5.623.453.632.852.20
Retention Ratios (%)49.2354.7548.1743.3271.80
Price / BV (X)2.961.901.981.611.29
Price / Net Operating Revenue (X)5.623.453.632.852.20
EarningsYield0.060.090.110.100.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Power Grid Corporation of India Ltd as of December 3, 2024 is: 379.30

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 3, 2024, Power Grid Corporation of India Ltd is Undervalued by 14.94% compared to the current share price 330.00

Intrinsic Value of Power Grid Corporation of India Ltd as of December 3, 2024 is: 406.16

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 3, 2024, Power Grid Corporation of India Ltd is Undervalued by 23.08% compared to the current share price 330.00

Last 5 Year EPS CAGR: 7.08%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -185.17, which is a positive sign.
  2. The company has shown consistent growth in sales (30.08 cr) and profit (11.50 cr) over the years.
  1. The stock has a low average ROCE of 10.42%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 60.92, which may not be favorable.
  3. The company has higher borrowings (119,690.31) compared to reserves (53,920.38), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Power Grid Corporation of India Ltd:
    1. Net Profit Margin: 34.01%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 13.46% (Industry Average ROCE: 13.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.87% (Industry Average ROE: 10.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.84
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.8
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 19.5 (Industry average Stock P/E: 77.33)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.42
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Power Grid Corporation of India Ltd. is a Public Limited Listed company incorporated on 23/10/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L40101DL1989GOI038121 and registration number is 038121. Currently Company is involved in the business activities of Transmission of electric energy. Company’s Total Operating Revenue is Rs. 39928.09 Cr. and Equity Capital is Rs. 6975.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Transmission/EquipmentB-9, Qutab Institutional Area, New Delhi Delhi 110016investors@powergrid.in
http://www.powergrid.in
Management
NamePosition Held
Mr. Ravindra Kumar TyagiChairman & Managing Director
Mr. Ravisankar GanesanDirector - Finance & CFO
Dr. Yatindra DwivediDirector - Personnel
Mr. Chetan Bansilal KankariyaIndependent Director
Mr. Ram Naresh TiwariIndependent Director
Dr. Saibaba DarbamullaGovernment Nominee Director
Mr. Lalit BohraGovernment Nominee Director

FAQ

What is the latest intrinsic value of Power Grid Corporation of India Ltd?

The latest intrinsic value of Power Grid Corporation of India Ltd as on 03 December 2024 is ₹379.30, which is 14.94% higher than the current market price of ₹330.00. The stock has a market capitalization of 3,06,454 Cr. and recorded a high/low of ₹366/212 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹82,760 Cr and total liabilities of ₹255,297 Cr.

What is the Market Cap of Power Grid Corporation of India Ltd?

The Market Cap of Power Grid Corporation of India Ltd is 3,06,454 Cr..

What is the current Stock Price of Power Grid Corporation of India Ltd as on 03 December 2024?

The current stock price of Power Grid Corporation of India Ltd as on 03 December 2024 is 330.

What is the High / Low of Power Grid Corporation of India Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Power Grid Corporation of India Ltd stocks is 366/212.

What is the Stock P/E of Power Grid Corporation of India Ltd?

The Stock P/E of Power Grid Corporation of India Ltd is 19.5.

What is the Book Value of Power Grid Corporation of India Ltd?

The Book Value of Power Grid Corporation of India Ltd is 99.0.

What is the Dividend Yield of Power Grid Corporation of India Ltd?

The Dividend Yield of Power Grid Corporation of India Ltd is 3.41 %.

What is the ROCE of Power Grid Corporation of India Ltd?

The ROCE of Power Grid Corporation of India Ltd is 13.2 %.

What is the ROE of Power Grid Corporation of India Ltd?

The ROE of Power Grid Corporation of India Ltd is 19.0 %.

What is the Face Value of Power Grid Corporation of India Ltd?

The Face Value of Power Grid Corporation of India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Power Grid Corporation of India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE