Power Grid Corporation of India Shares Decline by 2.01% Amid Market Downturn. Recently, there has been a decline in the share price of Power Grid Corporation of India. The decline sums up to about 2.01% and can be more also. This is a government company, as the majority of its shares are held by the government of India. This is very sad news for all the investors who had invested in these shares. To know more about the topic “Power Grid Corporation of India Shares Decline by 2.01% Amid Market Downturn,” read the complete article.
Power Grid Corporation of India Shares Decline by 2.01% Amid Market Downturn
Power Grid Corporation of India experienced a decline in the trading session, with its shares declining by 2.01% to Rs 297.65. The decline in the share price of Power Grid Corporation of India has placed it among the top losers in both the NIFTY 50 and NIFTY 100 indices. The stock’s performance is being closely monitored by investors, especially in light of recent market sentiment. In terms of performance metrics, Power Grid Corporation underperformed its sector, which saw a decline of 2.01%. The company’s stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.
There may be a negative impact on shareholders due to the share price on May 20, as indicated by the NIFTY and Sensex also being down on the day. While the stock saw a dip on May 20, it had been up for three straight sessions prior to this. Over the month, POWERGRID has slipped by approximately 5.05%. However, looking at the longer term, the stock has delivered significant returns: +12.1% over three months, +73.41% over three years, and +234.24% over five years.
Financial Performance Snapshot
A review of Power Grid Corporation of India’s monetary performance offers insights into the company’s recent stability and growth.
Quarterly Highlights
- March 2025: Revenue reached rs 12,275.35 Cr, an increase from Rs 11,233.03 Cr in December 2024.
- Net Profit: Stood at Rs 4,172.45 Cr for March 2025, compared to Rs 3,866.72 Cr in the prior quarter.
- EPS: Was reported at Rs 4.46 for March, slightly up from Rs 4.15 in December.
The quarterly data demonstrates a steady revenue and net profit trend, showcasing Power Grid’s consistent operational performance.
Annual Performance
- Revenue: Increased from Rs 37,743.54 Cr in 2020 to Rs 45,843.10 Cr in 2024.
- Net Profit: Rose from Rs 10,904.27 Cr to Rs 15,592.71 Cr over the same period.
- EPS: Climbed from Rs 21.14 in 2020 to 1.42 in 2024.
The annual figures underline a pattern of revenue and profit growth, paired with improved debt management.
Factors Affecting Share Price
There are several factors that affect the price of a share; some of them are
Financial Performance: Companies with low financial performance often get ignored by investors, resulting in a drop in stock prices. On the other hand, traders and investors are inclined to flock to companies with exceptionally good financials. This raised demand can drive up the stock price. However, it’s worth noting that a company growing much faster than its peers might also attract negative attention and concern.
Inflation: Historically, low inflation has had a bold inverse correlation with valuations (low inflation drives high multiples and high inflation drives low multiples). Deflation, on the other hand, is usually bad for stocks because it shows a loss in pricing power for companies.
Political Factors: There are multiple political factors that affect stock markets. For instance, the price of stocks goes down in case of risk of war, weak government, public outrage against the government, etc. Budget announcements or elections significantly impact the volatility of the market, affecting stock prices. Moreover, the new government policies introduced regarding the Indian economy can affect the share market.
Industry Performance: The stock price of a company will gain from a piece of bad news for its competitor if they are competing for the same market. For example, if a company making a popular product has to stop operations, then other companies that make a comparable product would have more customers.
Government Policies: Government policies have a major impact on stock market values. When investors view government policy announcements favorably, it can result in an increase in share prices for related companies and sectors. For example, the ethanol blending percentage in India increased from 1.53% in 2013-14 to 10.0% in 2021-22, with plans for E20 blended fuel by 2025.
