Power Grid Corp stock in expensive zone despite its market dominance

The nature of core business guarantees stable returns and the company pays regular dividends but valuations are high for a business with regulated tariffs and relatively low growth visibility

Power Grid Corporation of India (PGCIL) was one of the top Sensex gainers in trade on Monday, ending with gains of nearly 9 per cent. The stock has gained about 42 per cent year-to-date.

For the March quarter, the company reported a revenue of Rs 12,000 crore, which was down 3 per cent year-on-year (Y-o-Y) but up 4 per cent quarter-on-quarter (Q-o-Q).

The drop was on account of one-time arrears related to the Nagapattinam tariff bid competitive bidding (TBCB) project in Q4 FY23.

The operating profit came in at Rs 10,100 crore, which was down 8 per cent Y-o-Y and