Power Grid Corporation of India Limited Fundamental Analysis (NSE: POWERGRID.NS)
Power Grid Corporation of India Limited Fundamental Analysis (NSE: POWERGRID.NS)
Power Grid Corporation of India Limited (NSE: POWERGRID.NS) shows moderate financial fundamentals with a PE ratio of 15.88, profit margin of 41.80%, and ROE of 19.72%. The company generates $470.5B in annual revenue with weak year-over-year growth of -0.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze POWERGRID.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakPOWERGRID.NS struggles to generate sufficient returns from assets.
Valuation Score
ModeratePOWERGRID.NS shows balanced valuation metrics.
Growth Score
WeakPOWERGRID.NS faces weak or negative growth trends.
Financial Health Score
ModeratePOWERGRID.NS shows balanced financial health with some risks.
Profitability Score
ExcellentPOWERGRID.NS achieves industry-leading margins.
Key Financial Metrics
Is POWERGRID.NS Expensive or Cheap?
P/E Ratio
POWERGRID.NS trades at 15.88 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, POWERGRID.NS's PEG of 5.27 indicates potential overvaluation.
Price to Book
The market values Power Grid Corporation of India Limited at 2.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.44 times EBITDA. This is generally considered low.
How Well Does POWERGRID.NS Make Money?
Net Profit Margin
For every $100 in sales, Power Grid Corporation of India Limited keeps $41.80 as profit after all expenses.
Operating Margin
Core operations generate 63.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.72 in profit for every $100 of shareholder equity.
ROA
Power Grid Corporation of India Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Power Grid Corporation of India Limited generates strong operating cash flow of $148.36B, reflecting robust business health.
Free Cash Flow
Power Grid Corporation of India Limited generates weak or negative free cash flow of $6.55B, restricting financial flexibility.
FCF Per Share
Each share generates $0.70 in free cash annually.
FCF Yield
POWERGRID.NS converts 0.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How POWERGRID.NS Stacks Against Its Sector Peers
| Metric | POWERGRID.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.88 | 20.05 | Better (Cheaper) |
| ROE | 19.72% | 1031.00% | Weak |
| Net Margin | 41.80% | -566.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.74 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 1.71 | Weak Liquidity |
| ROA | 0.00% | 4551310.00% | Weak |
POWERGRID.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Power Grid Corporation of India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.37%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
40.39%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
16.74%
Industry Style: Defensive, Dividend, Income
High Growth