power
Power Grid Corporation
POWERGRID · Nifty 50
₹286.35
Price 2026-06-17
At a Glance
Fundamental
90/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Power Grid Corporation scores 90/100 on fundamentals (strong). Power Grid Corporation: PE below historical average. BROAD EXPANSION regime.
Fundamental Score: 90/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 16.4% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 16.42% is moderate margin-driven and stable. Net margin of 34.7% × asset turnover of 0.16x × leverage of 2.9x.
What This Means
Net margin of 34.7% means the company keeps ₹34.7 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.16x means the company generates ₹0.16 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.9x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
100.0%
Operating
56.9%
Net
34.7%
Gross margin 100.0% → operating margin 56.9% → net margin 34.7%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 2.5x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
ADEQUATEInterest covered 3.1x — adequate buffer. Debt is manageable. Debt/EBITDA at 3.7x is moderate.
Free Cash Flow
MODERATEFCF margin at 7.7% — moderate. Generating cash after investments.
Peer Comparison
Power Grid Corporation is compared against 8 peers in the power sector.
Key Watchpoints
Breaks above ₹301 (+5%)
Trend reversal confirmation
Breaks below ₹272 (-5%)
Further downside risk
PE reverts to 5Y median of 14.5
Valuation normalization
Power sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Governance structure concerns. Independent director representation may be weak.
Collection cycle changing. Collection improving — positive for cash flow.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes