One of the Maharatna PSU stocks specializes in the implementation, operation, and maintenance of the Inter-State Transmission System (ISTS), along with offering telecom and consultancy services. The stock is in focus after receiving orders for 400kV transmission projects in Tamil Nadu and Karnataka.
Stock movement:
In Friday’s trading session, Power Grid Corporation of India Limited’s share jumped by 0.87 percent from the previous close of Rs. 329. The stock opened at Rs. 331.75 and is currently trading at Rs. 331.85, with a high of Rs. 332.90 and a low of Rs. 325.10.
The market capitalization now stands at approximately Rs. 3,08,780.05 crore. Over the last 5 years, the company has given a return of 217.73 percent.
What Happened:
Power Grid Corporation of India Limited (POWERGRID) has been declared the successful bidder under tariff-based competitive bidding for two major projects.
The project includes a 400kV transmission line between Kudankulam Units 3 & 4 and the Tuticorin-II substation in Tamil Nadu, along with the installation of terminal equipment at Tuticorin-II for power evacuation.
Additionally, the company also secured a project for a 400kV transmission line between Koppal-II and Gadag-II in Karnataka, along with the augmentation of transformation capacity at the under-construction POWERGRID substations at both locations for integrating renewable energy generation projects.
Capex of POWERGRID
Power Grid Corporation of India Limited plans to invest a total of Rs. 9,16,142 crore over the next ten years. This includes Rs. 6,60,774 crore for the interstate transmission system and Rs. 2,55,368 crore for the intrastate transmission system across the 2022–27 and 2027–32 periods.
Currently, the company has projects in progress worth Rs. 8,896 crore under the RTM (Regulated Tariff Mechanism), Rs. 93,072 crore for TBCB (Tariff-Based Competitive Bidding) projects, and Rs. 3,319 crore for other projects, making the total value of ongoing work about Rs. 1,43,295 crore. For FY25, Power Grid has allocated Rs. 18,000 crore for its capital expenditure, focusing mainly on RTM and TBCB projects.
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Services and Operations
Power Grid Corporation of India Limited (PGCIL) is a leading provider of electricity transmission, specializing in Extra High Voltage (EHV) AC and High Voltage Direct Current (HVDC) lines. The company also offers telecom services, leveraging its strong infrastructure.
Additionally, PGCIL provides consultancy for power transmission projects, delivering efficient energy and communication solutions.
Recent quarter results:
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.
Financial ratio:
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 (PGCIL) was founded in 1989 and is a Maharatna Public Sector Undertaking (PSU). The company plays a key role in planning, implementing, operating, and maintaining the Inter-State Transmission System (ISTS) for electricity across India.
Written By – Nikhil Naik
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