Information About Power Grid Corporation Stock Price:

PGCIL is a state-owned company, responsible for the transmission and distribution of power in India. The company has been recorded as a 'Navratna' Public Sector Enterprise, and transmits over 50% of the total electricity generated in India through its transmission infrastructure. Along with this, Power Grid Corp is also engaged in the telecom sector and allowed telecom businesses to leverage its transmission network. It also offers consultancy services about transmission and distribution of power.

History of the Power Grid Corporation:

Power Grid Corporation of India Limited was incorporated on October 23, 1989, under the Companies Act of 1956. The company was known as the National Power Transmission Corporation Limited at that time. It was responsible for planning, executing, managing, and operating power transmission systems in the country at a central and regional level. The company commenced its first major operation in April 1991, when the Nuclear Power Corporation Limited transferred its transmission assets to Power Grid Corp. The company grew over the course of next decade to accomplish better grid management and operation. The company's equity shares were listed on the stock exchanges in October 2007.

Management:

Mr. I.S Jha - Chairman & Managing Director

Since November 2015, Mr. Jha has been the Chairman and MD of Power Grid Corporation of India Limited . Before his appointment to this post, Mr. Jha served as the Director of Projects in the company where he oversaw essential aspects of power transmission and distribution projects. Mr.jha started his professional career in 1981 with NTPC - as an Executive Trainee and was with Power Grid right from the beginning in 1991. Over his extensive tenure, he has led several critical transmission projects. One of his most significant contributions has been the integration of renewables with the existing national grid. Mr. Jha graduated as an Electrical Engineer from NIT, Jamshedpur.

Mr. K Sreekant - Director (Finance)

Mr. Sreekant presently serves as the Director of Finance of Power Grid Corporation of India Limited. He has been a part of the power industry for more than 30 years and has served in various positions, all related to finance and accounting. He is well-versed in all the financial aspects that go into successfully implementing a transmission project such as long-term financial planning, budget planning, investment appraisals and resource mobilization. Before his appointment to Power Grid, he served as the General Manager (Finance) in NTPC.

Mr. Ravi P Singh - Director (Personnel)

Mr. Singh graduated from NIT, Allahabad as a Mechanical Engineer and followed it with a Post Graduate Diploma from AIMA, New Delhi. He has been a part of the power industry for more than 35 years now and has held various key positions. He joined the Board of Directors in April 2012, and before joining the company, he worked with NTPC for ten years.

Listings in NSE, BSE, and Indices:

The Power Grid Corporation shares are publicly available for buying and selling on the country's two most prominent stock exchanges - the NSE and BSE. The codes for the same are as follows:

  1. NSE Code: POWERGRID
  2. BSE Code: 532898
  3. ISIN: INE752E01010
  4. Sector: Power - Generation & Distribution

Coming to the stock market indices, Power Grid Corporation of India Limited forms a part of the following:

  1. NIFTY 100
  2. NIFTY 200
  3. NIFTY 500
  4. NIFTY Energy
  5. S&P BSE 100
  6. S&P BSE 200
  7. S&P BSE 500
  8. NIFTY 50 USD
  9. S&P BSE Power
  10. S&P BSE SENSEX
  11. S&P BSE Utilities

Registered Office:

B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi - 110016, Contact number: 0124-2822000, 2823000, Email: investors@powergridindia.com

Corporate Office:

Saudamini Plot, Plot No. 2, Sector 29, Near IFFCO Chowk, Gurgaon, Haryana - 122001, Contact number: 0124-2571762

Recent Performance:

For the March quarter of the financial year 2017-18, the company's total income was disclosed to be at Rs.8,099 crore. An increase of 16% was also seen in the company's consolidated revenue for the year ended March 31, 2018, with the total figure standing at Rs.30,431 crore.

The EBITDA of the company for the year also increased by 15%.

Consequently, the net profit after tax for the fourth quarter of the FY 2017-18 was reported to be at Rs.2,005 crore - a five 5% increase over the PAT said for the Q4 FY17. Similarly, the PAT for the entire fiscal also improved by 10% to stand at Rs.8,198 crore.

The company's gross fixed assets were reported to be worth Rs.1,79,890 crore at the end of the fiscal year which showed an increase of more than 10% in total fixed assets over the course of the year.

At the same time, the total debt of Power Grid Corporation has also increased to Rs.1,30,503 crore from Rs.1,17,488 crore over the course of the fiscal year. Therefore, its debt-to-equity ratio stands at 71:29, according to the recently released reports.

The earnings per share, as of March 31, 2018, was stated to be Rs.15.67 as against Rs.14.24 in the previous fiscal year.

Power Grid Corporation of India Limited Stock Trends in 2018:

On January 2, 2018, the opening price of Power Grid stock was Rs.201.25 on the National Stock Exchange. Over the course of the month, the scrip moved on to shed points marginally to end the month at Rs.193.80. The investors made small gains during intraday sessions, but over the month, their shares went down.

The month of February was quite rocky for the investors. Owing to turbulence in the international markets, investors were quite cautious with their daily trades, and as a result, the Power Grid Corp stock price was on a somewhat rocky path. An interim dividend of 24.5% was also announced in the second week of February. Despite uncertainties in the market, the stock managed to make small gains towards the end of the month to close at Rs.197.70 on February 28.

For March, things were relatively stable as the Power Grid shares changed hands at levels above Rs.193. In April, the scrip commenced a bull run for the first time in 2018. Positive developments in the company drove this surge. The share price of Power Grid good gains and the closing price at the end of the month was Rs.207.85.

The prices rose slightly in May as the investors began looking forward to the annual year-end results. It rose to cross the Rs.210 mark, although the scrip moved on to shed all its previous gains heavily in June. From being traded at levels close to Rs.205, the scrip went down to touch the Rs.190 mark. This freefall continued in the first week of July as well, with the scrip trading close to its 52-week low price of Rs.180.55.

Does Investing in Power Grid Corporation of India Limited is a Good Idea?

Power Grid Corporation is a 'Navratna' company which has been assigned the task of transmitting and distributing power in India. In fact, it is responsible for spreading more than 50% of the total electricity generated in the country.

The Government of India has increased its focus on harnessing renewable energy in the country to provide cheap, sustainable power. As a result, Power Grid Corp has been entrusted by the Ministry of Power to design and develop a grid integration plan that would successfully add the power generated from renewable energy to the existing grid. This plan has been dubbed as Green Energy Corridors, and a detailed report on the same can be found on the official website.

The company's prospects are bright, given that it has a crucial role to play in improving the power sector in the country. Considering its financial performance, the company, in its most recent report, disclosed its revenue and net profit after tax for the FY 2018 which reported to be relatively better than the previous year. However, it is worth knowing that the company's debt for the year has increased by a significant margin.

Regarding the performance of the stock in the fiscal, the scrip was highly bullish - starting from 2016. In just two years, the Power Grid shares managed to deliver returns of more than 50%, although the scrip has been quite bearish in 2018. Its price is on a downward path as of early July 2018, and for many investors, it's an ideal time to buy. From a dividend point of view, the company has been quite frequent with dividends, providing at least two of them in a year.

Before investing in this scrip, it is strongly recommended that you do your research.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, more popular as BSE, is the first and oldest stock exchange in Asia. Premchand Roychand, an influential stockbroker and businessman, ventured into this ambitious journey in 1855 with around 20 associates. They organized meetings at several outdoor locations before finally finding a permanent place in Mumbai’s Dalal Street. BSE was thus formally established in 1875. The exchange chiefly facilitated floor trading for a century before adopting an automated digital platform in 1995. The company has grown enormously ever since and has joined the United Nations Sustainable Stock Exchange as a partner exchange in 2012. BSE has also opened India's first international exchange, known as INX, in 2016.

National Stock Exchange (NSE)

NSE was mainly a Government of India initiative that aspired to bring transparency to the Indian capital market. A group of leading Indian financial institutions, upon the government's instruction, joined their resources to set up the exchange. Established in 1992, NSE was the first demutualized electronic exchange of India. It was the first exchange in India that operated on an entirely automated, digital screen-based electronic trading system. The platform offered an easy trading facility and connected the investor base of the entire country. NSE has immensely expanded ever since and currently extends its services to various segments, such as equity derivatives, trading, debt and currency derivatives, clearing and settlement services in equity, etc.

NIFTY Index

Launched on 1st April 1996, the NIFTY is NSE's flagship index that helps investment managers in tracking the behavior of a portfolio of certain companies. The list includes 50 companies from 12 different sectors out of the 1600 companies registered under the NSE. These are the 50 blue-chip companies owning the largest and most liquid Indian securities. Therefore, it is popularly referred to as the Nifty 50 and the index symbolizes the weighted average of the stock value of these 50 companies. The Nifty exposes investors to the Indian market through one efficient portfolio. The IISL or India Index Services and Products is a specialized company that focuses on an index as a core product and it owns as well as manages the Nifty.

SENSEX Index

Just like NSE's Nifty 50, BSE's stock market index is called Sensex. The word 'Sensex' is a combination of the words 'Sensitive' and 'Index.' It is also known by the names of BSE 30 and S&P BSE SENSEX. It comprises of 30 well-established and financially thriving companies among the ones listed on BSE. These 30 companies represent diverse industrial sectors of the Indian economy and have the largest as well as most actively traded stocks. SENSEX is extensively reported in national and international markets, through both print and electronic media. It has a scientifically designed indexing system which is based on internationally accepted construction and review methodologies. Since September 2003, a free-float market capitalization methodology is applied to calculate Sensex.