ScoreWhy is Power Grid Corporation of India Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.17 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.17 times
2
Poor long term growth as Operating profit has grown by an annual rate 3.05% of over the last 5 years
3
Negative results in Sep 25
- OPERATING PROFIT TO NET SALES(Q) Lowest at 79.42%
- DEBT-EQUITY RATIO(HY) Highest at 2.80 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.47 times
4
With ROCE of 11.2, it has a Very Expensive valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -17.85%, its profits have fallen by -3.3%
- At the current price, the company has a high dividend yield of 3.3
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.06% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.85% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Power Grid Corpn for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Power Grid Corpn
-17.83%
-0.80
22.30%
Sensex
4.84%
0.40
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
3.71%
EBIT Growth (5y)
3.05%
EBIT to Interest (avg)
2.94
Debt to EBITDA (avg)
3.44
Net Debt to Equity (avg)
1.28
Sales to Capital Employed (avg)
0.20
Tax Ratio
20.49%
Dividend Payout Ratio
67.19%
Pledged Shares
0
Institutional Holding
45.06%
ROCE (avg)
12.18%
ROE (avg)
17.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
21
Price to Book Value
2.53
EV to EBIT
14.90
EV to EBITDA
9.90
EV to Capital Employed
1.67
EV to Sales
8.15
PEG Ratio
NA
Dividend Yield
3.31%
ROCE (Latest)
11.21%
ROE (Latest)
15.37%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-9What is not working for the Company
OPERATING PROFIT TO NET SALES(Q)
Lowest at 79.42%
DEBT-EQUITY RATIO(HY)
Highest at 2.80 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.47 times
PBDIT(Q)
Lowest at Rs 9,113.74 cr.
PBT LESS OI(Q)
Lowest at Rs 3,683.88 cr.
PAT(Q)
At Rs 3,566.08 cr has Fallen at -6.0%
EPS(Q)
Lowest at Rs 3.83
Loading Valuation Snapshot...
Here's what is not working for Power Grid Corpn
Operating Profit Margin - Quarterly
Lowest at 79.42% and Fallen
each quarter in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 9,113.74 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 3,683.88 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 3,566.08 cr has Fallen at -6.0%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.83
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 2.80 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 0.47 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
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