POWERGRID vs TATAPOWER
Side-by-side comparison of Power Grid Corporation of India Ltd. and Tata Power Co. Ltd.. Descriptive only — not investment advice.
Power Grid Corporation of India Ltd.
Power
Quality Score: 59/100
Tata Power Co. Ltd.
Power
Quality Score: 39/100
At a glance
| Metric | POWERGRID | TATAPOWER |
|---|---|---|
| Quality Score | 59/100 | 39/100 |
| P/E (trailing) | 20.2 | 36.6 |
| Forward P/E | 17.0 | 26.7 |
| ROE | — | — |
| Profit margin | +32.8% | +5.9% |
| Debt-to-equity | 141.19 | 156.16 |
| Dividend yield | +3.90% | +0.52% |
| 1Y price return | +5.4% | +15.7% |
| From 52w high | -3.4% | -6.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.21 | 2.42 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
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.
Tata Power (₹434) is a diversified Indian power utility spanning thermal, solar, wind, and distribution, trading at a PE of 36.6 against a forward PE of 26.7, above larger-cap peers NTPC (PE 22.3) and POWERGRID (PE 20.2). Over the past 5 years, revenue contracted 9.4% and earnings contracted 25.2%, while the debt-to-equity ratio stands at 156.16 with a rising trend and zero FCF-positive years on record. The stock has risen 15.7% over 12 months and 19.1% over the past 3 months, with both 50-DMA and 200-DMA below current price and RSI at 55.4 (neutral zone).
Pros
- ✓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%.
- ✓Recent price momentum is notable: +15.7% over 12 months and +19.1% over 3 months, with the stock trading above its 50-DMA (₹406.73) and 200-DMA (₹389.98), and only 6.65% below the 52-week high.
- ✓Tata Power has an active renewable energy pipeline including a 404 MW Bhutan hydro partnership announced in May 2026, reflecting continued capacity expansion into clean energy.
- ✓Forward PE of 26.7 represents a meaningful compression from the trailing PE of 36.6, implying consensus earnings recovery expectations embedded in current analyst projections.
- ✓Analyst mean rating of 2.42 across 24 analysts (1–5 scale, lower = more constructive) indicates coverage is distributed toward the constructive end of the scale.
Cons
- ✗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.
- ✗D/E of 156.16 with a rising debt trend and zero FCF-positive years reflects the most leveraged and cash-generative-deficient profile in the peer group, creating refinancing and interest-coverage vulnerability.
- ✗5-year earnings contraction of 25.2% and revenue contraction of 9.4% indicate that growth has not materialized over the measurement window despite significant capital deployment.
- ✗Quality score of 9 out of 100 ranks TATAPOWER last among the 6-company peer group (peer range: 23–52 for ADANIPOWER through POWERGRID), with consistency score of 35 and zero years of ROE above 15%.
- ✗Profit margin of 5.87% is thin for a capital-intensive sector; at current leverage levels, any revenue softness or interest-rate increase directly compresses the narrow margin available to equity.
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