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: 57/100
Power Grid Corporation of India Ltd.
Power
Quality Score: 59/100
At a glance
| Metric | NTPC | POWERGRID |
|---|---|---|
| Quality Score | 57/100 | 59/100 |
| P/E (trailing) | 22.3 | 20.2 |
| Forward P/E | 15.0 | 17.0 |
| ROE | — | — |
| Profit margin | +12.9% | +32.8% |
| Debt-to-equity | 118.13 | 141.19 |
| Dividend yield | +2.82% | +3.90% |
| 1Y price return | +20.8% | +5.4% |
| From 52w high | -3.0% | -3.4% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.38 | 2.21 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
NTPC (₹402.15) is India's largest government-owned power generation utility, currently trading above its 50-DMA (₹385.22) and 200-DMA (₹346.21) with a 12-month price gain of 20.76% and a 52-week drawdown of just -2.96%. The stock carries a debt-to-equity of 118.1 with a rising debt trend, a profit margin of 12.89%, and a trailing PE of 22.27 vs. a forward PE of 15.02, reflecting expectations of earnings recovery through capacity additions including its NTPC Green Energy renewables arm.
Power Grid Corporation of India Ltd. (POWERGRID) is a Navratna PSU operating the national high-voltage transmission network, trading at ₹313.95 with a trailing PE of 20.16 and forward PE of 16.96. The stock sits 11.5% above its 200-DMA (₹281.53) and 2.8% above its 50-DMA (₹305.30), with RSI at 53.88 (neutral). A 3.9% dividend yield and 32.79% profit margin characterise the regulated-return business model, while a debt-to-equity ratio of 141.19 reflects the capital-intensive nature of transmission infrastructure.
Pros
- ✓Trading above both the 50-DMA (₹385.22) and 200-DMA (₹346.21); 12-month price appreciation of 20.76% and 3-month gain of 10.33% with RSI at 59.54 (neutral zone), not in overbought territory.
- ✓Forward PE of 15.02 represents a 32.6% compression from the trailing PE of 22.27, implying market expectations of significant earnings growth ahead.
- ✓FCF-positive in 4 of available tracked years, indicating the core generation business generates cash despite heavy capex cycles.
- ✓Dividend yield of 2.82% provides an income component; NTPC is commissioning new capacity (150 MW Rajasthan solar COD, 250 MW Tehri pumped storage) that may support future earnings.
- ✓Lowest PE (20.16) and highest quality score (52) among ranked peers in the Power sector — NTPC trades at 22.27 PE with a quality score of 28, while ADANIGREEN trades at 140.19 PE with a quality score of 28.
- ✓Profit margin of 32.79% is consistent with a regulated utility business model where tariffs are set to cover costs and provide a fixed return on equity, reducing top-line volatility.
- ✓Current price of ₹313.95 is 11.5% above the 200-DMA (₹281.53) and 9.7% higher over the past 3 months, with three technical support levels identified between ₹256.08 and ₹285.50.
- ✓Dividend yield of 3.9% alongside board-approved ₹4,000 crore SBI debt raise signals ongoing capital deployment into the national grid expansion, with 5-year revenue growth of 10.3%.
Cons
- ✗Debt-to-equity of 118.1 is structurally elevated with a rising debt trend; continued borrowing to fund the renewables buildout increases interest-cost exposure.
- ✗5-year earnings CAGR of -1.6% despite 8% revenue CAGR signals sustained margin compression over the period — revenue growth has not translated to earnings growth.
- ✗Quality score of 28 and consistency score of 37 place NTPC in the lower tier within the power sector peer group, with ROE below 15% across all available tracked years.
- ✗Nearest technical resistance is at ₹414.40; supports are at ₹364.10, ₹362.20, and ₹352.00, meaning a pullback to the nearest support cluster would represent a decline of approximately 9-10% from current price.
- ✗Debt-to-equity of 141.19 is structurally elevated; while common in regulated transmission utilities, it means earnings sensitivity to interest rate movements and refinancing costs is high.
- ✗ROE data is unavailable in the current dataset, and with FCF positive in only 4 of the tracked years, capital efficiency cannot be fully assessed; consistency score of 43 is below median.
- ✗Sector peer comparison is materially weakened — one peer (DUMMYVEDL2) is a dummy entry, priceChange1Y is null for all peers, and ROE rankings are incomplete, reducing confidence in relative positioning conclusions.
- ✗Five-year earnings growth of 8.4% trails revenue growth of 10.3%, suggesting margin pressure or rising capital costs are absorbing incremental revenues; the quality score of 52 is mid-range rather than top-tier.
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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.