Power Grid Corporation of India Ltd (POWERGRID) — share price & stock analysis

Market cap

₹2,67,439 Cr

P/E

16.8×

ROE

16.5%

vs own 10-yr valuation

65th pctile

Book value / share

₹108

EPS (TTM)

₹17.1

10-yr median P/E

14.4×

Revenue (FY26)

₹46,733 Cr

Profit after tax (FY26)

₹15,928 Cr

Weinstein stage

Stage 2 (16 weeks)

Data as of

1 July 2026

2 of the 6 things we track are currently moving the right way — some things working, some not.

Where the levels actually stand: ROCE 10% — weak; real debt (1.47× equity); margins near the bottom of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

Price and profits are moving together

Since Aug 2016, the stock is up 183% and earnings per share are up 160% — the price has tracked the profits, not run ahead of them.pricettm_eps

The market is paying for delivery, not promises. What you see in earnings is what you get in the price.

Today’s P/E of 16.8× is the middle of its own range against its own 10-year history (65th percentile) — neither a bargain nor a stretch, by its own standards.pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (14.4×).

The price is in a confirmed uptrend — 16 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 16 weeks in.stage

The price sits above its rising 200-day average (₹291 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 1 week — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

A lumpy ride — no clean trend in profits

Over 12 years, sales went from ₹15,555 Cr to ₹46,733 Cr (about 10% a year), and profit from ₹4,548 Cr to ₹15,928 Cr.revenuenet_profit

Sales have gone quiet — growth has stalled

Mar 26 sales were ₹11,666 Cr, down 5% on the same quarter last year.revenue

A shrinking topline puts the burden of the story on margins and one-offs — watch whether this is a pause or a slide.

Margins are compressing — 83% → 45% in a year

Of every ₹100 of sales, the company keeps ₹45.5 as operating profit (a year ago it kept ₹83.0).opm_pct

The gross margin barely moved (100% → 100%), so the change came from running costs — overheads are growing faster than sales.gpm_pctopm_pct

Profit grew 10% last quarter

Mar 26 profit after tax was ₹4,546 Cr, up 10% year on year.net_profit

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹79,263 Cr of profit and collected ₹1,78,573 Cr of operating cash — about 225% conversion.operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about 91 days to go out the door as materials and come back as collected cash — up from 63 days the year before.cash_conversion_cycle

The biggest mover: customers taking longer to pay (63 → 91 days).debtor_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹74,252 Cr (FY14) to ₹1,76,623 Cr, with another ₹43,654 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 25% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is self-funded: the last 3 years' investing outflow (₹71,952 Cr) fits inside the operating cash the business generated (₹1,14,444 Cr).investing_cash_flowoperating_cash_flow

Carrying real debt

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹147 — total borrowings have grown from ₹84,220 Cr to ₹1,48,071 Cr over the window.borrowings

Every ₹100 kept in the business earns just ₹10

Return on capital employed is 10.0% (a year ago: 13.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

The owners aren’t moving

Promoters hold 51.3%, essentially unchanged. Foreign funds own 25.0%, domestic funds 20.1%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

Meanwhile foreign funds have been the sellers — from 33.1% to 25.0% over the window. Someone on the other side of the table disagrees; both sides count.fiis_pct

Interesting, not obvious

The numbers are genuinely mixed, and the price is roughly fair to the delivery so far.

Biggest worry: free cash flow falling (₹12,690 Cr → ₹5,626 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data