Low PE high ROE stock: This power company has been declared as the successful bidder for a project in Gujarat!

The stock has a PE multiple of 10.04 whereas the sectoral PE multiple is 22 with an ROE of 19.34 per cent.

Today, shares of Power Grid Corporation of India Ltd plunged 1.46 per cent to Rs 219 per share from its previous closing of Rs 222.25 with an intraday high of Rs 222.26 and a low of Rs 216.95.  

Power Grid Corporation of India Ltd has been declared as the successful bidder under Tariff Based Competitive Bidding to establish an Inter-State Transmission System for the “Establishment of Khavda Pooling Station-3 (KPS3) in Khavda RE Park” on a build, own, operate and transfer (BOOT) basis. The scope of the project comprises the establishment of a new 765/400kV GIS Substation, 765kV D/C Transmission Line and associated works in the state of Gujarat.  

Power Grid Corporation of India Limited is a Maharatna CPSU and India’s largest electric power transmission company. The President of India (Government of India) holds a 51.34 per cent stake in the company as of December 2022. PGCIL was incorporated in 1989 to set up extra-high voltage alternating current and high-voltage direct current (HVDC) transmission lines.  

Talking about the financials, this Large-Cap company has a market capital of Rs 1,52,170 crore. The company reported excellent numbers in both Quarterly Results and annual results. In Q3FY23, net sales rose by 7.81 per cent and net profit rose by 10.69 per cent compared to Q3FY22.   

The stock has a PE multiple of 10.04 whereas the sectoral PE multiple is 22 with an ROE of 19.34 per cent respectively. Investors should keep an eye on this PSU stock for upcoming trading sessions.