One of the Maharatna PSU stocks engaged in the implementation, operation, and maintenance of the Inter-State Transmission System (ISTS), telecom, and consultancy services. The stock is in focus after receiving the projects for the Transmission System for the evacuation of power from Rajasthan REZ Ph-IV.
Stock movement:
In Tuesday’s trading session, Power Grid Corporation of India Limited‘s share plunged by 0.99 percent from the previous close of Rs. 342.85. The stock opened at Rs. 342.75 and is currently trading at Rs. 339.45, with a high of Rs. 344.55 and a low of Rs. 339.30. The market capitalization now stands at approximately Rs. 3,15,941.51 crore.
What Happened:
Power Grid Corporation of India Limited (POWERGRID) has been awarded the project for the Transmission System for the evacuation of power from Rajasthan REZ Ph-IV through tariff-based competitive bidding.
The project involves setting up a 765/400 kV sub-station near Ghiror, Uttar Pradesh, along with associated transmission lines and substation upgrades in Rajasthan and Uttar Pradesh, received on a BOOT basis with the letter of intent dated November 25, 2024.
Capex of POWERGRID
The Capex of POWERGRID shows a total investment of 9,16,142 crores over the next decade. This includes 6,60,774 crores for the interstate transmission system and 2,55,368 crores for the intrastate transmission system across the 2022–27 and 2027–32 periods.
POWERGRID’s “Works in Hand” include ongoing RTM projects worth Rs. 8,896 Cr, TBCB projects worth Rs. 93,072 Cr, and other projects worth Rs. 3,319 Cr, totaling around Rs. 1,43,295 Cr. Additionally, the company’s FY25 Capex plan is Rs. 18,000 Cr, focusing on RTM and TBCB initiatives.
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Major HVDC projects and Cross-Border Links
Power Grid Corporation of India Limited has planned several major HVDC (High Voltage Direct Current) projects and cross-border links. One such project is the India-Sri Lanka 500 MW HVDC (VSC) link, which will enable the transmission of additional RE power between the two countries. Another project is the Rajasthan (20GW) under Phase-III Part I, a 6000MW ± 800 kV (LCC) Bhadla-Fatehpur link.
Services and Operations
Power Grid Corporation of India Limited (PGCIL) specializes in electricity transmission through EHV AC and HVDC lines and provides telecom services using its robust
infrastructure. The company also offers consultancy services for power transmission projects, ensuring efficient energy and communication solutions.
Recent quarter results and ratios:
Power Grid Corporation of India Limited’s revenue has increased from Rs. 11,267 crore in Q2 FY24 to Rs. 11,278 crore in Q2 FY25. The net profit of Power Grid Corporation of India Limited has also grown by 0.31 percent, from Rs. 3,781 crore in Q2 FY24 to Rs. 3,793 crore in Q2 FY25.
Power Grid Corporation of India Limited’s revenue and net profit have grown at a CAGR of 5.51 percent and 9.19 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 13.2 percent and 19 percent, respectively. The debt-to-equity ratio of the company is to be 1.33x. Power Grid Corporation of India Limited’s EPS is to be Rs. 16.9.
Company Overview:
Power Grid Corporation of India Limited was established in 1989 and is classified as a Maharatna Public Sector Undertaking (PSU). The company is responsible for planning, implementing, operating, and maintaining the Inter-State Transmission System (ISTS) for electricity across India.
Written By – Nikhil Naik
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