Maharashtra’s Largest Electric Power Transmission Company Wins Kurnool Transmission Project in Andhra Pradesh
With a PE ratio of 15.9x, the company trades at a discount compared to the industry PE of 28.8x.
Power Grid Corporation of India Limited has been declared as successful bidder under Tariff Based Competitive Bidding to establish Inter-State transmission system for the project namely “Transmission System Strengthening at Kurnool-III PS for Integration of Additional RE Generation Projects” on build, own, operate and transfer (BOOT) basis. The Letter of Intent (LoI) has been received by POWERGRID on 06th March 2025.
The project comprises augmentation of transformation capacity at existing Kurnool-III substation and extension works at existing C’peta substation along with 765kV D/C Transmission Line. The entire scope of the project is in the State of Andhra Pradesh.
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Power Grid Corporation of India Limited is a Maharatna CPSU and India’s largest electric power transmission company. GoI holds a 51.34 per cent stake in the company as on March 31, 2021. PGCIL was incorporated in 1989 to set up extra-high voltage alternating current and high-voltage direct current (HVDC) transmission lines.
The company moves large blocks of power from the central generating agencies and areas that have surplus power to load centres within and across regions. It is under the administrative control of the Ministry of Power, GoI.
PGCIL also executes several strategically important projects, assigned to the company by GoI on nomination basis. Power Grid Corporation of India is principally engaged in planning, implementation, operation and maintenance of Inter-State Transmission System (ISTS), Telecom and consultancy services.
Power Grid Corporation Ltd has a market capitalisation of Rs 2,46,141 crore and is currently trading at Rs 265. The stock has reached a 52-week high of Rs 366 and a low of Rs 245 over the past year. The one-year return is -9.93 per cent, and 118 per cent returns in 5 years. The company has been maintaining a healthy dividend payout of 65 per cent.
In the Quarterly Results of December 2024, the company reported revenue of Rs 11,233.03 crore, a decline of 2.74 per cent year-on-year and 0.40 per cent quarter-on-quarter from Rs 11,549.79 crore in December 2023 and Rs 11,277.76 crore in September 2024. The net profit for the quarter stood at Rs 3,861.63 crore, showing a decline of 4.14 per cent year-on-year but an increase of 1.81 per cent quarter-on-quarter from Rs 4,028.25 crore in December 2023 and Rs 3,793.02 crore in September 2024. The net profit margin for December 2024 was 34.38 per cent, compared to 34.88 per cent in December 2023 and 33.63 per cent in September 2024.
For the financial year 2024, the company reported revenue of Rs 45,843.10 crore, reflecting a 0.53 per cent growth from Rs 45,603.11 crore in financial year 2023. The net profit for the year was Rs 15,544.90 crore, marking a 4.82 per cent increase from Rs 15,016.85 crore in financial year 2023. The net profit margin stood at 32.76 per cent for financial year 2024, compared to 31.42 per cent in the previous year.
With a PE ratio of 15.9x, the company trades at a discount compared to the industry PE of 28.8x. The company has ROCE of 13.2 per cent and ROE of 19 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.