Power Grid Corporation of India Ltd (POWERGRID) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Torrent Power

Adani Energy Sol

NTPC

NLC India

Adani Power

NHPC Ltd

JSW Energy

NTPC Green Ene.

Tata Power Co.

Power Grid Corpn

Adani Green

Why is Power Grid Corporation of India Ltd ?

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

Poor long term growth as Operating profit has grown by an annual rate 3.05% of over the last 5 years

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

With ROCE of 11.2, it has a Very Expensive valuation with a 1.6 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 -9.10%, its profits have fallen by -3.3%
At the current price, the company has a high dividend yield of 3.4

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 8.47% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.10% returns

Real-Time Research Report

Verdict Report

How 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

-9.5%

-0.44

21.65%

Sensex

7.88%

0.70

11.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

45.00%

ROCE (avg)

12.18%

ROE (avg)

17.22%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.46

EV to EBIT

14.64

EV to EBITDA

9.72

EV to Capital Employed

1.64

EV to Sales

8.01

PEG Ratio

Dividend Yield

3.40%

ROCE (Latest)

11.21%

ROE (Latest)

15.37%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What 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 quarters

MOJO 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 quarters

MOJO 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 quarters

MOJO 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 quarters

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio