IndiGrid Trust (INDIGRID)
StalwartFairStock Score: 49/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹140.06 |
| Market Cap | ₹13,341.62 Cr |
| P/E Ratio | 58.07 |
| ROCE | 7.51% |
| ROE | 315.17% |
| Dividend Yield | 9.85% |
| Profit Growth | 76.33% |
| Debt/Equity | 4.78 |
| Sales Growth | 11.66% |
| Free Cash Flow | ₹1,122 Cr |
| 52-Week Range | ₹161.01 — ₹176 |
| Sector | Power |
| Book Value | ₹36.08 |
Strengths
- Regulated power transmission assets generate stable, contracted cash flows
- 5-year revenue CAGR of 14.41% and latest profit growth of 76.33% show growth
- Strong free cash flow of ₹1,122 Cr supports a high 9.85% dividend yield
- Piotroski F-score of 7/9 indicates decent financial health
- High entry barriers and essential infrastructure provide a competitive moat
Concerns
- Debt-to-equity of 4.78 shows very high leverage
- P/E of 58.07 and P/B of 4.10 leave little margin of safety
- ROCE of 7.51% is modest and may be below the true cost of capital
- Current price of ₹148 is below the stated 52-week low of ₹157.50, reflecting price weakness
AI Analysis
IndiGrid owns power transmission assets. That is a business I appreciate: essential infrastructure, regulated revenues, and high barriers to entry. But my rule is to buy wonderful businesses at fair prices, and I have to question whether ₹18,923 Cr is fair. The trust trades at 58 times net profit and 4.1 times book value of ₹36.08. The reported 315% ROE is more an artifact of a thin equity base than proof of economic excellence; the more honest ROCE is just 7.51%. With debt-to-equity at 4.78, this is a leveraged structure, as InvITs often are. Leverage can boost distributions but it also raises risk if refinancing turns costly or tariffs get reset. Profit growth of 76% catches the eye, but sales growth of 11.66% and a five-year revenue CAGR of 14.41% are the numbers I would rely on. Free cash flow of ₹1,122 Cr is strong and supports the 9.85% dividend yield, yet yield can seduce investors into ignoring valuation and leverage. A Piotroski F-score of 7/9 is reassuring, but the FairStock Score of 49/100 says mixed. At the current price, I would not rush. Paying 58 times earnings for a regulated transmission trust leaves no room for error. I need a margin of safety. I would wait for a lower price or clearer evidence that growth can continue without piling on more debt.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer