NTPC vs POWERGRID
Side-by-side comparison of NTPC Ltd. and Power Grid Corporation of India Ltd.. Descriptive only — not investment advice.
NTPC Ltd.
Power
Quality Score: 51/100
Power Grid Corporation of India Ltd.
Power
Quality Score: 55/100
At a glance
| Metric | NTPC | POWERGRID |
|---|---|---|
| Quality Score | 51/100 | 55/100 |
| P/E (trailing) | 12.0 | 14.5 |
| Forward P/E | 12.9 | 14.6 |
| ROE | +13.7% | +16.5% |
| Profit margin | +14.4% | +34.1% |
| Debt-to-equity | 118.13 | 150.99 |
| Dividend yield | +3.10% | +4.19% |
| 1Y price return | +12.0% | +4.6% |
| From 52w high | -11.7% | -10.1% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.37 | 2.16 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
NTPC, India's largest thermal power generator, trades at ₹365.8 with a trailing PE of 12.02 — the lowest in its Power-sector peer group — and yields 3.1% in dividends. The stock is up 12.01% over 12 months and sits above its 200-DMA (₹353.47), though it remains 5.2% below the 50-DMA (₹384.83). FY26 standalone PAT grew 18% and Q4 results beat estimates, while a 30 GW nuclear expansion plan marks a significant long-term capacity pivot.
Power Grid Corporation of India (POWERGRID) is the national electricity transmission monopoly, trading at ₹292.25 with a trailing PE of 14.55 and a dividend yield of 4.19%. The company posted 5-year earnings growth of +9.6% and has maintained positive free cash flow in 4 of the tracked years, though 5-year revenue growth is negative at −5% and debt-to-equity stands at 150.99 with a rising trend. The stock is 3.3% below its 50-day moving average but remains above its 200-day moving average of ₹283.52.
Pros
- ✓Lowest PE in the Power-sector peer group at 12.02, compared with ADANIPOWER (34.9), TATAPOWER (34.4), ADANIENSOL (81.5), and ADANIGREEN (156.5), reflecting a substantial valuation discount to sector peers.
- ✓FY26 standalone PAT up 18% year-on-year and Q4 EPS beat estimates by 15%, with group PAT also growing 15% — the most recent earnings cycle shows acceleration relative to the 5-year trend.
- ✓FCF was positive in 4 of the years covered by persistence data, and a final dividend of ₹3.5 per share was declared alongside a 3.1% trailing yield, demonstrating consistent cash returns to shareholders.
- ✓Analyst mean rating of 1.37 across 28 analysts on a 1–5 scale (lower = more constructive), with 8 recent news articles skewing 6 positive and 0 negative, reflecting broadly constructive external coverage.
- ✓ROE of 16.49% over a regulated-utility peer group where NTPC sits at 13.69%, ADANIGREEN at 7.58%, and ADANIENSOL at 9.66% — POWERGRID ranks 2nd of 6 peers on return on equity.
- ✓5-year earnings growth of +9.6% alongside positive FCF in 4 of tracked years suggests the regulated tariff model is converting asset additions to earnings without sustained cash burn.
- ✓Dividend yield of 4.19% backed by the board approving a ₹5,000 crore fundraise, indicating capital access; recent BESS (battery energy storage) tenders of 100 MW/400 MWh and 400 MW/1.6 GWh signal active capital deployment in grid modernisation.
- ✓PE of 14.55 ranks 2nd lowest in the 6-peer power sector cohort versus ADANIGREEN at 156.55, ADANIENSOL at 81.48, ADANIPOWER at 34.95, and TATAPOWER at 34.42 — POWERGRID trades at a meaningful PE discount to most sector peers.
Cons
- ✗5-year earnings CAGR of -1.6% against 5-year revenue CAGR of 8% indicates margin compression over the medium term; profit margin of 14.44% and ROE of 13.69% — which has not crossed 15% in any year of available data — point to capital efficiency below peer medians.
- ✗Debt-to-equity of 118.1 is on a rising trend, driven by renewable and nuclear capacity investment; higher leverage increases sensitivity to interest-rate movements and refinancing conditions at the group level.
- ✗Quality score of 19 places NTPC last among Power-sector peers with valid scores (ADANIPOWER 41, POWERGRID 37, ADANIGREEN 28, ADANIENSOL 23), reflecting the combined effect of lower ROE, margin compression, and rising debt.
- ✗Price is 5.2% below the 50-DMA (₹384.83) with a 3-month change of -2.21% and a 52-week drawdown of -11.73%, indicating near-term underperformance relative to the longer-term trend.
- ✗Debt-to-equity of 150.99 with a rising trend is the defining balance-sheet characteristic; while regulated utilities structurally carry higher leverage, ongoing borrowing for capital expenditure compounds refinancing exposure should interest rates shift.
- ✗5-year revenue growth of −5% alongside positive earnings growth indicates top-line contraction — cost efficiencies have sustained profits, but there is no organic revenue expansion visible in the 5-year window.
- ✗Quality score of 37 out of 100 and fundamental consistency score of 43 place POWERGRID below the mid-point of its sector on composite capital-efficiency measures; ROE exceeded 15% in only 4 of the tracked years.
- ✗1-year price appreciation of +4.59% alongside a 10.1% drawdown from the 52-week high reflects price underperformance relative to earnings growth of +9.6%; the stock has been 3.3% below its 50-DMA in the near term.
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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.