Case study

POWERGRID

Power Grid Corp

Worth a closer look
0Score

Power Grid Corp (POWERGRID) Stock Analysis & Case Study

Is POWERGRID a good buy? The data-driven verdict.

Power Grid Corp (POWERGRID) trades at ₹290,on the numbers it worth a closer look, a Downstox Snapshot Score of 61/100.

On the numbers, Power Grid Corp (POWERGRID) worth a closer look, a Downstox Snapshot Score of 61/100, weighing fairly valued at 16.9× earnings, ROE of 16.5%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on POWERGRID

The central question is whether a regulated transmission utility deserves a 16.9 P/E, or whether that already prices in the next capex cycle. The 16.5% ROE sitting well above a 9.74% ROCE tells you leverage is doing real work here, which fits a debt-funded grid builder but means the dividend (3.11%) and the asset base both ride on borrowing staying cheap. A Piotroski 4/9 is the thing to sit with: it hints the underlying financial momentum is softer than the steady-utility story suggests. Watch whether returns on fresh capex hold up, or just inflate the book.

Downstox editorial view, written by our own analysts. Information, not investment advice.

POWERGRID fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹2.69L Cr
Current price
₹290
P/E ratio
16.9×
P/B ratio
2.69×
Book value
₹108
Dividend yield
3.11%
ROCE
9.7%
ROE
16.5%
Piotroski F-Score
4/9

Is POWERGRID overvalued? POWERGRID P/E vs its Power

POWERGRID's P/E of 16.9× sits below the Power peer median of 25.6×, so on earnings it screens cheaper than peers, while its 3.11% dividend yield is above the peer median of 0.62%.

POWERGRID P/E
16.9×
Peer median P/E
25.6×
POWERGRID div yield
3.11%
Peer median yield
0.62%

The bull case for POWERGRID

  • A 16.9× P/E sits in the fair-value band, neither cheap nor stretched.
  • A healthy 16.5% return on equity.
  • Pays a 3.1% dividend yield, so you're partly paid to wait.

The bear case & risks

  • No model or past record guarantees future returns, treat this as one input, not a decision.

POWERGRID Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. POWERGRID scores 4/9,mixed financial health.

POWERGRID MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy POWERGRID with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox26.6%3.8×
Zerodha22.7%4.4×
DhanCHEAPEST22.0%4.5×

Compare every broker on the POWERGRID MTF page.

POWERGRID vs peers,Power comparison

StockP/EDiv yieldMarket cap
POWERGRID (this stock)16.9×3.11%₹2.69L Cr
NTPC13.2×2.27%₹3.56L Cr
TATAPOWER33.8×0.62%₹1.30L Cr
NHPC20.9×2.44%₹78,614 Cr
ADANIGREEN140.0×0.00%₹2.55L Cr
ADANIPOWER35.3×0.00%₹4.51L Cr
SUZLON25.6×0.00%₹80,826 Cr

About Power Grid Corp: sector, index & market-cap context

Power Grid Corp (POWERGRID) is a large-cap NSE-listed company in the Power sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹2.69L Cr. See more Nifty 50 stocks.

How the POWERGRID Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Power Grid Corp's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

POWERGRID analysis, FAQs

Is Power Grid Corp (POWERGRID) a good buy?

On the numbers, Power Grid Corp (POWERGRID) worth a closer look, a Downstox Snapshot Score of 61/100, weighing fairly valued at 16.9× earnings, ROE of 16.5%. This is a data snapshot for research, not investment advice.

Is POWERGRID overvalued or undervalued?

POWERGRID trades at 16.9× earnings versus a peer median of 25.6×, so it screens cheaper than its Power peers.

What is the bull case for POWERGRID?

A 16.9× P/E sits in the fair-value band, neither cheap nor stretched. A healthy 16.5% return on equity. Pays a 3.1% dividend yield, so you're partly paid to wait.

What are the risks in POWERGRID?

No model or past record guarantees future returns, treat this as one input, not a decision.

More on POWERGRID