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Power Grid Corporation of India Ltd logo

Power Grid Corporation of India Ltd

NSE: POWERGRID BSE: 532898

256.50

(-1.54)%

Sat, 31 Jan 2026, 01:30 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (8.3x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
  • Power Grid Corporation of India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Power Grid Corporation of India's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Power Grid Corporation of India's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Electric Utilities industry average.
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Cons

  • Cash flow for Power Grid Corporation of India is expected to increase but not above the 50% threshold in 2 years time.
  • Power Grid Corporation of India's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
  • Power Grid Corporation of India's earnings growth is positive but not above the India market average.
  • Power Grid Corporation of India's earnings are expected to increase but not above the low risk growth rate next year.
  • Power Grid Corporation of India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Power Grid Corporation of India's performance (ROE) is expected over the next 3 years.
  • Power Grid Corporation of India's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Power Grid Corporation of India's revenue is expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Power Grid Corporation of India's revenue growth is positive but not above the India market average.

health

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Pros

  • Power Grid Corporation of India is profitable, therefore cash runway is not a concern.
  • Power Grid Corporation of India is profitable, therefore cash runway is not a concern.
  • The level of debt compared to net worth has been reduced over the past 5 years (248.7% vs 224.8% today).
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Cons

  • Power Grid Corporation of India's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.1x debt.
  • Power Grid Corporation of India's long term commitments exceed its cash and other short term assets.
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
  • Power Grid Corporation of India's level of debt (224.8%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Kandikuppa's remuneration is lower than average for companies of similar size in India.
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Cons

  • The average tenure for the Power Grid Corporation of India board of directors is less than 3 years, this suggests a new board.
  • Kandikuppa's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • The average tenure for the Power Grid Corporation of India management team is less than 2 years, this suggests a new team.

past

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Pros

  • Power Grid Corporation of India's year on year earnings growth rate has been positive over the past 5 years.
  • Power Grid Corporation of India used its assets more efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
  • Power Grid Corporation of India has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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Cons

  • Power Grid Corporation of India's 1-year earnings growth is less than its 5-year average (12.8% vs 14.6%)
  • Power Grid Corporation of India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Power Grid Corporation of India's earnings growth has not exceeded the IN Electric Utilities industry average in the past year (12.8% vs 16.2%).

value

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Pros

  • Power Grid Corporation of India's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Power Grid Corporation of India's share price is below the future cash flow value, and at a substantial discount (> 40%).
  • Power Grid Corporation of India is good value based on earnings compared to the IN Electric Utilities industry average.
  • Power Grid Corporation of India is good value based on earnings compared to the India market.
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Cons

  • Power Grid Corporation of India is overvalued based on assets compared to the IN Electric Utilities industry average.
  • Power Grid Corporation of India is poor value based on expected growth next year.
  • 532898 underperformed the Electric Utilities industry which returned -13.9% over the past year.
  • 532898 underperformed the Market in India which returned -14.5% over the past year.
  • BSE:532898 is up 1.6% underperforming the Electric Utilities industry which returned 5.5% over the past month.
  • BSE:532898 is up 1.6% underperforming the market in India which returned 8% over the past month.

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