Power Grid Corpn (POWERGRID)

FairStock Score: 62/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market asks ₹266.05 for Power Grid. This is not a fast grower: sales fell 12.98%, profit fell 6.63%, and the five-year revenue CAGR is only 3.94%. I see a slow-growing, regulated transmission utility, though a strategically important one. The quality is decent: ROE 15.69%, ROCE 12.78%, Piotroski F-Score 8/9, free cash flow ₹12,690 crore, promoter holding 51.34%, and a 4.60% dividend yield. The latest quarter had sales of ₹12,395 crore and net profit of ₹4,185 crore, which shows cash-generating scale. The transmission network may have an economic moat, but regulated returns and capital intensity limit the upside. But debt/equity is 1.51, current ratio 1.42, and Altman Z-Score 1.99—leverage is not trivial. More important, the price lacks a margin of safety. Graham Number is ₹199.80, DCF intrinsic value is ₹226.66, and both sit below ₹266.05; the Graham margin of safety is -49.47%. P/E 13.02 and P/B 2.46 are not outrageous for a utility, but they do not compensate for weak growth and leverage. The P/E looks modest, but the asset-heavy balance sheet and negative growth alter the risk-reward. The EV/EBITDA of 356.18, if taken literally, is a glaring anomaly I cannot ignore. As a value investor, I would not buy fresh at this price. I would watch for growth stabilization, debt reduction, and a price closer to DCF or Graham value. Existing holders may keep it for the dividend and strategic moat, but new money should demand a discount.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer