This Maharatna CPSU company, engaged in providing electric power transmission services gained attention on Friday after winning the bid for an inter-state transmission system in Andhra Pradesh.
Stock Performance
With a market capitalization of Rs 2,44,512.87 crore, Power Grid climbed 1 percent in Friday’s trading session and made a high of Rs 268.70 per share compared to its previous closing price of Rs 266.45 per share. The stock retraced from its day’s high and was trading at Rs 262.90 which is a slight decline from the previous close.
What Happened
Power Grid has won the bid under TBCB (Tariff Based Competitive Bidding) to develop an inter-state transmission system in Andhra Pradesh. The project includes upgrading the transformation capacity at the Kurnool-III substation, extending the C’peta substation, and constructing a 765kV D/C transmission line.
Company Overview
Power Grid Corporation of India Ltd is primarily engaged in the transmission of electricity. It is the largest electric power transmission company in the country with the Government of India holding around 51 percent. It has also expanded into telecom by utilizing its nationwide transmission network to install optical ground wire (OPGW). The company has also received a Letter of Intent for this project.
Financial Performance
Looking at the financials, the company reported a 3 percent YoY decrease in revenue from Rs 11,550 crore to Rs 11,233 crore in Q3 FY25. This was accompanied by a 4 percent decline in net profits from Rs 4,028 crore to Rs 3,862 crore during the same period.
Order Book
As of January 2025, Power Grid’s total order book stands at ~Rs 1.4 lakh crore. Of this, 65 percent comes from TBCB projects, 6 percent from ongoing RTM projects, 27 percent from new RTM projects, and the remaining 2 percent from other sources.
Industry Outlook
According to the Central Electricity Authority (CEA), India’s power demand is projected to reach 817 GW by 2030. By 2029-30, renewable energy’s share in power generation is expected to rise from 18 percent to 44 percent, while thermal energy’s share is likely to drop from 78 percent to 52 percent. The government also targets achieving 500 GW of renewable energy capacity by 2030.
Written by Shwetha Sairam
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