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Power Grid Corporation of India

NSEI:POWERGRID
Snowflake Description

Undervalued established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
POWERGRID
NSEI
₹832B
Market Cap
  1. Home
  2. IN
  3. Utilities
Company description

Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India. The last earnings update was 60 days ago. More info.


Add to Portfolio Compare Print
  • Power Grid Corporation of India has significant price volatility in the past 3 months.
POWERGRID Share Price and Events
7 Day Returns
8%
NSEI:POWERGRID
4%
IN Electric Utilities
8.9%
IN Market
1 Year Returns
-20.4%
NSEI:POWERGRID
-23.5%
IN Electric Utilities
-30.6%
IN Market
POWERGRID Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Power Grid Corporation of India (POWERGRID) 8% -12.3% -18.6% -20.4% -18.9% 7.5%
IN Electric Utilities 4% -17% -24.8% -23.5% -20% -12.3%
IN Market 8.9% -24.8% -29.4% -30.6% -21.5% -10.4%
1 Year Return vs Industry and Market
  • POWERGRID outperformed the Electric Utilities industry which returned -23.5% over the past year.
  • POWERGRID outperformed the Market in India which returned -30.6% over the past year.
Price Volatility
POWERGRID
Industry
5yr Volatility vs Market

POWERGRID Value

 Is Power Grid Corporation of India undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Power Grid Corporation of India to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Power Grid Corporation of India.

NSEI:POWERGRID Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:POWERGRID
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.254 (1 + (1- 35%) (169.05%))
0.687
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.8 * 7.85%)
12.76%

Discounted Cash Flow Calculation for NSEI:POWERGRID using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Power Grid Corporation of India is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:POWERGRID DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 12.76%)
2020 189,020.00 Analyst x1 167,630.37
2021 201,337.70 Est @ 6.52% 158,348.87
2022 214,435.98 Est @ 6.51% 149,565.85
2023 228,369.89 Est @ 6.5% 141,259.80
2024 243,196.94 Est @ 6.49% 133,408.28
2025 258,977.48 Est @ 6.49% 125,988.70
2026 275,775.16 Est @ 6.49% 118,978.82
2027 293,657.26 Est @ 6.48% 112,357.02
2028 312,695.11 Est @ 6.48% 106,102.47
2029 332,964.35 Est @ 6.48% 100,195.23
Present value of next 10 years cash flows ₹1,313,835.00
NSEI:POWERGRID DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹332,964.35 × (1 + 6.48%) ÷ (12.76% – 6.48%)
₹5,645,548.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹5,645,548.40 ÷ (1 + 12.76%)10
₹1,698,851.68
NSEI:POWERGRID Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹1,313,835.00 + ₹1,698,851.68
₹3,012,686.68
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹3,012,686.68 / 5,231.59
₹575.86
NSEI:POWERGRID Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:POWERGRID represents 1.00063x of BSE:532898
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00063x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 575.86 x 1.00063
₹576.23
Value per share (INR) From above. ₹576.23
Current discount Discount to share price of ₹159.10
= -1 x (₹159.10 - ₹576.23) / ₹576.23
72.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Power Grid Corporation of India is available for.
Intrinsic value
>50%
Share price is ₹159.1 vs Future cash flow value of ₹576.23
Current Discount Checks
For Power Grid Corporation of India to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Power Grid Corporation of India's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Power Grid Corporation of India's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:POWERGRID PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹20.66
BSE:532898 Share Price ** BSE (2020-03-31) in INR ₹159
India Electric Utilities Industry PE Ratio Median Figure of 7 Publicly-Listed Electric Utilities Companies 8.94x
India Market PE Ratio Median Figure of 2,613 Publicly-Listed Companies 9.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Power Grid Corporation of India.

NSEI:POWERGRID PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532898 Share Price ÷ EPS (both in INR)

= 159 ÷ 20.66

7.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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.
Price based on expected Growth
Does Power Grid Corporation of India's expected growth come at a high price?
Raw Data
NSEI:POWERGRID PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
7.7%per year
India Electric Utilities Industry PEG Ratio Median Figure of 5 Publicly-Listed Electric Utilities Companies 1x
India Market PEG Ratio Median Figure of 400 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

NSEI:POWERGRID PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.7x ÷ 7.7%

0.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Grid Corporation of India is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Power Grid Corporation of India's assets?
Raw Data
NSEI:POWERGRID PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹119.68
BSE:532898 Share Price * BSE (2020-03-31) in INR ₹159
India Electric Utilities Industry PB Ratio Median Figure of 9 Publicly-Listed Electric Utilities Companies 0.64x
India Market PB Ratio Median Figure of 3,612 Publicly-Listed Companies 0.62x
NSEI:POWERGRID PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532898 Share Price ÷ Book Value per Share (both in INR)

= 159 ÷ 119.68

1.33x

* Primary Listing of Power Grid Corporation of India.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Grid Corporation of India is overvalued based on assets compared to the IN Electric Utilities industry average.
X
Value checks
We assess Power Grid Corporation of India's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. Power Grid Corporation of India has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

POWERGRID Future Performance

 How is Power Grid Corporation of India expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Power Grid Corporation of India expected to grow at an attractive rate?
  • Power Grid Corporation of India's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • Power Grid Corporation of India's earnings growth is positive but not above the India market average.
  • Power Grid Corporation of India's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:POWERGRID Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:POWERGRID Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 7.7%
NSEI:POWERGRID Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.9%
India Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 11%
India Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
India Market Earnings Growth Rate Market Cap Weighted Average 19.6%
India Market Revenue Growth Rate Market Cap Weighted Average 8.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:POWERGRID Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:POWERGRID Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 436,434 346,373 125,360 3
2021-03-31 407,157 335,398 117,140 5
2020-03-31
2020-03-31 381,393 317,101 106,842 5
NSEI:POWERGRID Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 371,304 108,074
2019-09-30 365,018 279,911 104,813
2019-06-30 359,886 102,585
2019-03-31 350,591 233,807 100,335
2018-03-31 299,536 227,101 82,040
2017-03-31 256,974 215,753 74,507

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Power Grid Corporation of India's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
  • Power Grid Corporation of India's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:POWERGRID Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Power Grid Corporation of India Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:POWERGRID Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 22.37 22.70 22.03 2.00
2020-03-31
2020-03-31 20.58 20.58 20.58 1.00
NSEI:POWERGRID Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 20.66
2019-09-30 20.04
2019-06-30 19.61
2019-03-31 19.18
2018-03-31 15.68
2017-03-31 14.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Power Grid Corporation of India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Power Grid Corporation of India's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Power Grid Corporation of India has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

POWERGRID Past Performance

  How has Power Grid Corporation of India performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Power Grid Corporation of India's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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's 1-year earnings growth is less than its 5-year average (12.8% vs 14.6%)
  • Power Grid Corporation of India's earnings growth has not exceeded the IN Electric Utilities industry average in the past year (12.8% vs 12.8%).
Earnings and Revenue History
Power Grid Corporation of India's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Power Grid Corporation of India Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:POWERGRID Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 371,304.00 108,073.60 20,227.20
2019-09-30 365,017.90 104,813.00 20,187.50
2019-06-30 359,885.70 102,584.50 19,868.90
2019-03-31 350,591.20 100,335.20 19,410.10
2018-03-31 299,536.20 82,040.00 17,430.90
2017-03-31 256,974.40 74,507.30 14,909.40
2016-03-31 206,520.80 59,586.10 10,883.20
2015-03-31 176,585.10 50,462.50 12,122.50
2014-03-31 156,754.30 45,475.80 16,977.00 6.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Power Grid Corporation of India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • 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).
X
Past performance checks
We assess Power Grid Corporation of India's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Power Grid Corporation of India has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

POWERGRID Health

 How is Power Grid Corporation of India's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Power Grid Corporation of India's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Power Grid Corporation of India's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Power Grid Corporation of India's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Power Grid Corporation of India's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Power Grid Corporation of India Company Filings, last reported 3 months ago.

NSEI:POWERGRID Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 625,412.20 1,406,189.80 136,191.50
2019-09-30 625,412.20 1,406,189.80 136,191.50
2019-06-30 590,883.90 1,498,638.60 47,547.90
2019-03-31 590,883.90 1,498,638.60 47,547.90
2018-03-31 544,259.90 1,315,029.60 28,123.10
2017-03-31 498,655.00 1,189,879.10 39,842.30
2016-03-31 439,699.30 1,085,449.10 24,474.60
2015-03-31 384,387.30 962,434.10 31,886.50
2014-03-31 346,979.40 842,196.80 51,771.20
  • Power Grid Corporation of India's level of debt (224.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (248.7% vs 224.8% today).
  • Debt is not well covered by operating cash flow (19.9%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Power Grid Corporation of India's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Power Grid Corporation of India has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

POWERGRID Dividends

 What is Power Grid Corporation of India's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.24%
Current annual income from Power Grid Corporation of India dividends. Estimated to be 7.82% next year.
If you bought ₹2,000 of Power Grid Corporation of India shares you are expected to receive ₹105 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Power Grid Corporation of India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.95%).
  • Power Grid Corporation of India's dividend is above the markets top 25% of dividend payers in India (4.16%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:POWERGRID Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
India Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 5.2%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 1.9%
India Minimum Threshold Dividend Yield 10th Percentile 0.5%
India Bottom 25% Dividend Yield 25th Percentile 0.9%
India Top 25% Dividend Yield 75th Percentile 4.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:POWERGRID Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 13.69 3.00
2021-03-31 11.48 4.00
2020-03-31
2020-03-31 9.29 4.00
NSEI:POWERGRID Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-07-29 8.330 4.358
2019-05-29 8.330 4.131
2019-03-07 5.830 3.037
2018-05-29 5.250 2.777
2018-02-01 5.800 2.895
2017-08-14 4.350 2.102
2017-05-29 4.350 2.048
2017-02-09 2.510 1.253
2016-08-24 2.310 1.252
2016-05-26 2.310 1.411
2016-01-27 2.110 1.495
2015-08-10 2.000 1.503
2015-06-01 2.000 1.416
2015-03-04 2.000 1.375
2014-08-27 2.580 1.832
2014-05-29 2.580 1.931
2014-02-28 2.410 2.253
2013-10-18 2.750 2.831
2013-02-12 2.920 2.773
2013-01-10 2.110 1.886
2012-08-24 2.110 1.786
2012-08-21 2.110 1.784
2012-05-29 2.110 1.885
2011-10-03 1.750 1.680
2010-08-11 1.500 1.478
2010-05-26 1.500 1.472
2010-01-07 1.200 1.104
2009-06-16 1.200 1.107

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Power Grid Corporation of India's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Power Grid Corporation of India's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Power Grid Corporation of India afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Power Grid Corporation of India has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

POWERGRID Management

 What is the CEO of Power Grid Corporation of India's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kandikuppa Sreekant
COMPENSATION ₹9,291,983
AGE 56
TENURE AS CEO 0.6 years
CEO Bio

Mr. Kandikuppa Sreekant serves as Chairman and Managing Director of Power Grid Corporation of India Limited since August 05, 2019. He serves as Chairman of Powerlinks Transmission Limited since September 2019. Mr. Sreekant serves as Director of Power Grid Corporation of India Limited since September 01, 2016. Mr. Sreekant serves as Director of Finance of Power Grid Corporation of India Limited since September 01, 2016 and served as its Chief Financial Officer.Mr. Sreekant was a Director of Finance and Director at NTPC Ltd from March 19, 2018 until August 12, 2019. Mr. Sreekant served as General Manager of Finance at NTPC. Mr. Sreekant has more years of experience in the power sector involving all facets of Finance & Accounting function and in particular, long term financial planning, investment appraisals, formulation of capital budgets, resource mobilization from domestic and international markets and corporate accounts. He holds B. Com(H), ICMA and PGDM (Finance), MDI.

CEO Compensation
  • Kandikuppa's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Kandikuppa's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Power Grid Corporation of India management team in years:

0.6
Average Tenure
56.5
Average Age
  • The average tenure for the Power Grid Corporation of India management team is less than 2 years, this suggests a new team.
Management Team

Kandikuppa Sreekant

TITLE
Chairman
COMPENSATION
₹9M
AGE
56
TENURE
0.6 yrs

Seema Gupta

TITLE
Director of Finance & Director of Operations and Director
COMPENSATION
₹9M
AGE
57
TENURE
2 yrs

K. S. Murty

TITLE
Chief Financial Officer
TENURE
0.6 yrs

B. N. Bhowmick

TITLE
Executive Director of Technology Development

Satish Chandra

TITLE
Chief General Manager of Administration

Divya Tandon

TITLE
Compliance Officer

Vinod Singh

TITLE
Director of Personnel & Director
AGE
55

Sunil Agrawal

TITLE
COO and CISO of ERP
AGE
56

R. Chauhan

TITLE
Chief Manager of MATL
AGE
66

B. Gupta

TITLE
Chief Manager of TL
AGE
66
Board of Directors Tenure

Average tenure and age of the Power Grid Corporation of India board of directors in years:

1.6
Average Tenure
57
Average Age
  • The average tenure for the Power Grid Corporation of India board of directors is less than 3 years, this suggests a new board.
Board of Directors

Kandikuppa Sreekant

TITLE
Chairman
COMPENSATION
₹9M
AGE
56
TENURE
0.6 yrs

Seema Gupta

TITLE
Director of Finance & Director of Operations and Director
COMPENSATION
₹9M
AGE
57
TENURE
2 yrs

Divya Tandon

TITLE
Compliance Officer

Vinod Singh

TITLE
Director of Personnel & Director
AGE
55

Rajeev Chauhan

TITLE
Executive Director & Director of Projects
AGE
59
TENURE
1.6 yrs

Manoj Mittal

TITLE
Independent Director
COMPENSATION
₹780K
AGE
55
TENURE
2.4 yrs

Anthiya Mahalakshmi

TITLE
Non-Official Independent Director
COMPENSATION
₹480K
AGE
49
TENURE
1.7 yrs

Sunil Sharma

TITLE
Independent Director
COMPENSATION
₹420K
AGE
63
TENURE
1.7 yrs

M. Venkatesan

TITLE
Non-Official Independent Director
AGE
64
TENURE
0.7 yrs

Dilip Nigam

TITLE
Government Nominee Director
AGE
58
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Power Grid Corporation of India's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Power Grid Corporation of India has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

POWERGRID News

Simply Wall St News

Should We Be Delighted With Power Grid Corporation of India Limited's (NSE:POWERGRID) ROE Of 15%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Power Grid Corporation of India Limited (NSE:POWERGRID). … Over the last twelve months Power Grid of India has recorded a ROE of 15%.

Simply Wall St -

Investors Are Undervaluing Power Grid Corporation of India Limited (NSE:POWERGRID) By 20.34%

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is Power Grid Corporation of India Limited (NSE:POWERGRID) Undervalued After Accounting For Its Future Growth?

Power Grid Corporation of India Limited (NSE:POWERGRID) closed yesterday at ₹189.15, which left some investors asking whether the high earnings potential can still be justified at this price. … View our latest analysis for Power Grid of India? … Investors in Power Grid of India have been patiently waiting for the uptick in earnings.

Simply Wall St -

What Should You Know About Power Grid Corporation of India Limited's (NSE:POWERGRID) Capital Returns?

and want to begin learning the link between Power Grid Corporation of India Limited (NSE:POWERGRID)’s return fundamentals and stock market performance. … Therefore, looking at how efficiently Power Grid of India is able to use capital to create earnings will help us understand your potential return. … Power Grid of India's Return On Capital Employed

Simply Wall St -

What Kind Of Shareholders Own Power Grid Corporation of India Limited (NSE:POWERGRID)?

In this article, I will take a quick look at Power Grid Corporation of India Limited’s (NSE:POWERGRID) recent ownership structure – an unconventional investing subject, but an important one. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Power Grid Corporation of India Limited (NSE:POWERGRID): What Does The Future Look Like?

The latest earnings announcement Power Grid Corporation of India Limited (NSE:POWERGRID) released in March 2018a

Simply Wall St -

Is Power Grid Corporation of India Limited's (NSE:POWERGRID) CEO Paid At A Competitive Rate?

Leading Power Grid Corporation of India Limited (NSE:POWERGRID) as the CEO, Indu Jha took the company to a valuation of ₹991.91b. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … CEOs leading companies of similar size and profitability

Simply Wall St -

Power Grid Corporation of India Limited (NSE:POWERGRID): Poised For Long Term Success?

Since Power Grid Corporation of India Limited (NSE:POWERGRID) released its earnings in March 2018,. … as a 22.24% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 14.41%

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Power Grid Corporation of India Limited (NSE:POWERGRID)

Over the past 10 years Power Grid Corporation of India Limited (NSE:POWERGRID) has returned an average of 2.00% per year from dividend payouts. … Let's take a look at Power Grid of India in more detail. … See our latest analysis for Power Grid of India

Simply Wall St -

Does Power Grid Corporation of India Limited's (NSE:POWERGRID) Stock Price Account For Its Growth?

Power Grid Corporation of India Limited (NSE:POWERGRID) is considered a high growth stock. … View out our latest analysis for Power Grid of India? … Analysts are predicting good growth prospects for Power Grid of India over the next couple of years

Simply Wall St -

POWERGRID Company Info

Description

Power Grid Corporation of India Limited, a central transmission utility, engages in the transmission of power in India. The company is involved in planning, executing, owing, operating, and maintaining high voltage transmission systems. As of June 30, 2019, it owned and operated 1,53,635 ckt kms of transmission lines, as well as 243 substations with transformation capacity of 3,68,512 MVA. The company also provides consultancy services, including system engineering and feasibility studies, environmental and social impact assessment, design and engineering, contract, project management and construction supervision, owner's and lender's engineer, and other services, as well as engineering, procurement, and construction of transmission projects on turnkey basis. Power Grid Corporation of India Limited offers its consultancy services to state owned utilities, private utilities, central public sector undertakings, and government departments in Afghanistan, Bangladesh, Bhutan, Congo, Ethiopia, Fiji, Nigeria, Nepal, Kazakhstan, Kenya, the Kyrgyz Republic, Myanmar, Pakistan, Senegal, Sri Lanka, Tajikistan, Tanzania, the United Arab Emirates, and Uzbekistan. In addition, it provides overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was founded in 1989 and is based in Gurugram, India.

Details
Name: Power Grid Corporation of India Limited
POWERGRID
Exchange: NSEI
Founded: 1989
₹831,822,754,032
5,231,589,648
Website: http://www.powergridindia.com
Address: Power Grid Corporation of India Limited
Saudamini, Plot No. 2,
Sector-29,
Gurugram,
Haryana, 122001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532898 Equity Shares Mumbai Stock Exchange IN INR 05. Oct 2007
NSEI POWERGRID Equity Shares National Stock Exchange of India IN INR 05. Oct 2007
Number of employees
Current staff
Staff numbers
9,255
Power Grid Corporation of India employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 13:38
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/01/31
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.