Power Grid Corporation of India Limited is a Schedule ‘A’, ‘Maharatna’ Public Sector Enterprise of the Government of India, founded on October 23, 1989, under the Company Act, 1956. Power Grid is a listed company, with 51.34% held by the Government of India, and the rest held by institutional investors and the public.
Power Grid has caught the attention of many discerning investors. As one of India’s leading power system companies, Power Grid Corporation of India Limited (Power Grid Corp) stands tall in power generation and distribution.
Power Grid Financial Analysis
For the quarter ending December 31, 2023, the firm reported a Consolidated Total Income of Rs 11,819.70 Crore, up 2.51% from the previous quarter’s Total Income of Rs 11,530.43 Crore and up 2.51% from the same quarter last year at Rs 11,530.22 Crore. In the last quarter, the company earned a net profit after tax of Rs 4,028.25 crore. The company spent 21.14% of its operational revenues on interest charges and 5.5% on labor costs in the fiscal year ending March 31, 2023.
In the following table, we have included the financial stats of the company for the year 2023. You can take a look and compare the stats on a quarter-by-quarter basis.
| Category | March 2023 | June 2023 | Sep 2023 | Dec 2023 |
| Sales | Rs. 11,494.90 Crores | Rs. 10,436.11 Crores | Rs. 10,419.41 Crores | Rs. 10,676.59 Crores |
| Expenses | Rs. 4573 Crores | Rs. 4497 Crores | Rs.4352 Crores | Rs. 4433 Crores |
| Operating Profit | Rs. 7,713.98 Crores | Rs. 6,584.28 Crores | Rs. 6,851.85 Crores | Rs. 7,033.02 Crores |
| Basic Earning per Share | 4.27 | 5.08 | 4.12 | 4.27 |
Power Grid Price Analysis
Compared to the last closing price, As of April ‘24 Power Grid share price is trading around Rs. 270+. Go through the following Power Grid share price chart for a better idea of its recent market trends.
Power Grid Corporation Of India’s TTM P/E ratio is 14.03, compared to the sector’s P/E of 12.45.
Should You Invest in Power Grid Stocks?
Over the last year, PowerGrid has outperformed its benchmark index. Power Grid Corporation of India Ltd. share price moved up by 0.20% from its previous close of Rs 279.55. Power Grid Corporation of India Ltd. stock last traded price is 280.10. Daily Power Grid’s MACD crossover appeared yesterday and its average price gain of 3.34% within 10 days of this signal in the last 10 years gives a buy signal to the investors.
However, you should always consider a company’s financial health, leadership, and industry position to decide. With the company’s history and performance, you can make an informed decision.
Conclusion
Investors looking for exposure to India’s developing energy infrastructure may want to consider investing in Power Grid Corp. Power Grid has a solid financial performance, excellent growth potential, and a favorable market position, making it an interesting investment opportunity. Investors should undertake due research before making any investment selections, analyze their risk tolerance, and engage with investment professionals.
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