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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Power Grid Corporation of India Ltd

About the Company - Power Grid Corporation of India Ltd

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, Katwaria Sarai, New Delhi Delhi 110016investors@powergrid.co.in
http://www.powergrid.in
Management
NamePosition Held
Mr. K SreekantChairman & Managing Director
Mr. Ravindra Kumar TyagiDirector - Operations
Mr. Abhay ChoudharyDirector - Projects
Mr. Ravisankar GanesanDirector - Finance
Mr. Chetan Bansilal KankariyaIndependent Director
Mr. Ram Naresh TiwariIndependent Director
Mr. K N OnkarappaIndependent Director
Mr. Dilip NigamGovernment Nominee Director
Mr. Saibaba DarbamullaGovernment Nominee Director

Power Grid Corporation of India Ltd. Share Price Update

Share PriceValue
Today₹273.10
Previous Day₹276.20

Basic Stock Data of Power Grid Corporation of India Ltd

Market Cap 2,62,230 Cr.
Current Price 282
High / Low292/159
Stock P/E16.7
Book Value 93.4
Dividend Yield3.84 %
ROCE13.1 %
ROE19.6 %
Face Value 10.0

Data Source: screener.in

Competitors of Power Grid Corporation of India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Transformers & Rectifiers India Ltd (TRIL) 4,856 Cr. 341397/52.2347 26.70.04 %14.8 %10.8 % 1.00
Adani Energy Solutions Ltd 1,19,692 Cr. 1,0731,250/630103 1070.00 %10.2 %11.6 % 10.0
Aartech Solonics Ltd 174 Cr. 164191/0.00119 28.50.31 %6.90 %4.88 % 10.0
Voltamp Transformers Ltd 7,570 Cr. 7,4828,580/2,57126.1 1,1520.53 %25.1 %19.2 % 10.0
Industry Average46.5 Cr128.25148.7840.80.22%14.25%11.62%7.75

Power Grid Corporation of India Ltd Quarterly Results

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

Power Grid Corporation of India Ltd Quarterly Chart

Power Grid Corporation of India Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales10,32313,08115,55517,54020,65225,69729,95435,05937,74439,64041,62245,58145,841
Expenses1,8982,2442,5882,6132,4683,2473,9938,1404,8584,7345,7967,0016,075
Operating Profit8,42510,83712,96714,92718,18422,45025,96126,92032,88634,90635,82638,58039,766
OPM %82%83%83%85%88%87%87%77%87%88%86%85%87%
Other Income8889667257316569334,0651,5052,8207694,6922,0891,267
Interest1,9862,5993,2544,0815,0866,2047,3248,7379,5098,1358,0369,6349,885
Depreciation2,6373,4284,0795,1736,1827,7229,23110,54111,60712,03912,87213,33313,264
Profit before tax4,6905,7766,3596,4047,5729,45713,4719,14714,59015,50119,61017,70217,884
Tax %30%25%28%21%21%21%39%-10%24%22%14%13%
Net Profit3,3034,3134,5485,0465,9597,4518,20410,03411,05912,03616,82415,41715,347
EPS in Rs4.015.244.895.436.418.018.8210.7911.8912.9418.0916.5816.51
Dividend Payout %30%31%30%21%20%31%33%43%47%52%61%67%

Power Grid Corporation of India Ltd Profit & Loss Yearly Chart

Power Grid Corporation of India Ltd Growth

Compounded Sales Growth
10 Years:13%
5 Years:9%
3 Years:6%
TTM:5%
Compounded Profit Growth
10 Years:14%
5 Years:26%
3 Years:17%
TTM:5%
Stock Price CAGR
10 Years:18%
5 Years:23%
3 Years:31%
1 Year:76%
Return on Equity
10 Years:17%
5 Years:19%
3 Years:19%
Last Year:20%

Power Grid Corporation of India Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital4,6304,6305,2325,2325,2325,2325,2325,2325,2325,2326,9756,9759,301
Reserves18,95321,77329,46633,20738,73844,63449,19453,85759,46464,70469,27276,03977,585
Borrowings54,35569,23384,22096,243108,545118,988131,503146,376148,270143,232134,696126,661119,892
Other Liabilities14,19417,74822,56226,10226,79726,80939,42541,91643,70642,53940,00840,62738,725
Total Liabilities92,133113,384141,480160,784179,312195,662225,354247,380256,671255,708250,950250,303245,502
Fixed Assets48,41562,56874,25291,191115,094137,678156,198172,740181,112183,726191,773185,437181,878
CWIP28,88635,26550,06953,68145,61138,26437,66937,63135,17724,83812,85413,77213,922
Investments7745864232209191,1651,2241,2961,4311,4863,7883,4893,454
Other Assets14,05814,96416,73615,69317,68818,55530,26435,71338,95145,65942,53647,60446,248
Total Assets92,133113,384141,480160,784179,312195,662225,354247,380256,671255,708250,950250,303245,502

Power Grid Corporation of India Ltd Reserves and Borrowings Chart

Power Grid Corporation of India Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 8,58211,69015,22315,80015,00821,57522,71023,27130,73929,40326,12438,005
Cash from Investing Activity -18,495-22,084-26,639-24,185-21,576-23,836-25,701-18,727-10,733-9,244753-6,126
Cash from Financing Activity 8,2189,96213,7126,3995,6213,9591,285-2,431-18,806-20,521-28,967-29,264
Net Cash Flow-1,695-4322,295-1,986-9481,698-1,7072,1131,199-362-2,0912,615

Power Grid Corporation of India Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days5442384648444449497981104
Inventory Days
Days Payable
Cash Conversion Cycle5442384648444449497981104
Working Capital Days-232-254-301-331-271-229-208-156-245-57-62-67
ROCE %9%10%9%8%9%10%10%9%11%12%11%13%

Power Grid Corporation of India Ltd Financial Efficiency Indicators Chart

Power Grid Corporation of India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%51.34%
FIIs28.39%28.28%27.87%28.19%29.35%30.25%31.70%32.76%32.30%33.14%32.01%30.51%
DIIs13.77%13.88%8.38%8.42%16.02%15.17%13.79%12.73%13.39%12.55%13.21%14.77%
Public6.50%6.51%12.41%12.05%3.29%3.24%3.17%3.18%2.99%2.95%3.44%3.37%
No. of Shareholders5,91,5856,71,1107,19,2767,77,0728,04,1527,90,5328,23,2398,11,0748,02,6197,83,2659,31,3669,61,585

Power Grid Corporation of India Ltd Shareholding Pattern Chart

No. of Power Grid Corporation of India Ltd Shareholders

Power Grid Corporation of India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India CPSE ETF25072956419.065238.99
Parag Parikh Flexi Cap Fund1132099574.92365.52
SBI Nifty 50 ETF845453201.081766.57
SBI S&P BSE Sensex ETF596110231.251245.57
ICICI Prudential Bharat 22 ETF507501728.191060.42
SBI Equity Hybrid Fund386666661.31807.94
HDFC Flexi Cap Fund - Regular Plan300000001.48626.85
UTI Nifty 50 ETF231391131.08483.49
UTI S&P BSE Sensex ETF201385771.25420.8
HDFC Hybrid Equity Fund - Regular Plan182178611.8380.66

Power Grid Corporation of India Ltd ROCE Trend

Power Grid Corporation of India Ltd EPS Trend

Power Grid Corporation of India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.1024.1223.0121.1419.18
Diluted EPS (Rs.)22.1024.1223.0121.1419.18
Cash EPS (Rs.)41.3342.4645.6143.0339.08
Book Value[Excl.RevalReserv]/Share (Rs.)119.01109.31133.68123.66112.94
Book Value[Incl.RevalReserv]/Share (Rs.)119.01109.31133.68123.66112.94
Revenue From Operations / Share (Rs.)65.3459.6675.7772.1467.01
PBDIT / Share (Rs.)58.0653.9769.1564.7458.92
PBIT / Share (Rs.)38.9535.5246.1442.5538.77
PBT / Share (Rs.)25.4928.0029.2227.5917.24
Net Profit / Share (Rs.)22.2224.0122.6020.8418.93
NP After MI And SOA / Share (Rs.)22.1024.1223.0121.1419.18
PBDIT Margin (%)88.8590.4691.2689.7387.91
PBIT Margin (%)59.6059.5360.8958.9757.85
PBT Margin (%)39.0146.9338.5638.2425.72
Net Profit Margin (%)34.0040.2329.8228.8928.25
NP After MI And SOA Margin (%)33.8240.4230.3629.3028.61
Return on Networth / Equity (%)18.5722.0617.2117.0916.98
Return on Capital Employeed (%)12.8112.0211.2010.329.87
Return On Assets (%)6.156.704.704.304.05
Long Term Debt / Equity (X)1.371.501.852.092.22
Total Debt / Equity (X)1.521.771.872.142.30
Asset Turnover Ratio (%)0.170.150.140.140.14
Current Ratio (X)0.910.720.890.680.61
Quick Ratio (X)0.870.690.850.650.58
Dividend Payout Ratio (NP) (%)45.2451.8256.6728.1944.99
Dividend Payout Ratio (CP) (%)24.2629.3628.3313.7521.94
Earning Retention Ratio (%)54.7648.1843.3371.8155.01
Cash Earning Retention Ratio (%)75.7470.6471.6786.2578.06
Interest Coverage Ratio (X)4.204.684.453.563.53
Interest Coverage Ratio (Post Tax) (X)2.582.742.541.972.42
Enterprise Value (Cr.)276646.23280879.72238435.32216164.42234930.66
EV / Net Operating Revenue (X)6.076.756.015.736.70
EV / EBITDA (X)6.837.466.596.387.62
MarketCap / Net Operating Revenue (X)3.453.632.852.202.96
Retention Ratios (%)54.7548.1743.3271.8055.00
Price / BV (X)1.901.981.611.291.75
Price / Net Operating Revenue (X)3.453.632.852.202.96
EarningsYield0.090.110.100.130.09

Power Grid Corporation of India Ltd Profitability Ratios (%)

Power Grid Corporation of India Ltd Liquidity Ratios

Power Grid Corporation of India Ltd Liquidity Ratios (%)

Power Grid Corporation of India Ltd Interest Coverage Ratios (%)

Power Grid Corporation of India Ltd Valuation Ratios

Fair Value / Intrinsic Value of Power Grid Corporation of India Ltd

Fair Value: ₹317.46

The stock is undervalued by 12.57% compared to the current price ₹282

*Investments are subject to market risks

Strength and Weakness of Power Grid Corporation of India Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -201.08, which is a positive sign.
  2. The company has shown consistent growth in sales (28.54 cr) and profit (10.85 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 40.39 and average Dividend Yield of 59.37%.
  2. The stock has a low average ROCE of 10.08%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 56.50, which may not be favorable.
  4. The company has higher borrowings (114,016.46) compared to reserves (48,991.23), which may suggest financial risk.

Should I Buy Power Grid Corporation of India Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Power Grid Corporation of India Ltd:
    1. Net Profit Margin: 34.00%
      • 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: 12.81% (Industry Average ROCE: 14.25%)
      • 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. Interest Coverage Ratio (Post Tax): 2.58
      • 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.
    4. Quick Ratio: 0.87
      • 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.
    5. ✓ Stock P/E: 16.7 (Industry average Stock P/E: 150.53)
      • 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.
    6. ✗ Total Debt / Equity: 1.52
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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