Power Grid Corporation of India's intrinsic value using Intellectual Capital analysis

Power Grid Corporation of India

BSE : 532898

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NSE : POWERGRID

Industry : Pow. Distribution

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ISIN : INE752E01010

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FreeFloat : 35.00%

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FnO : Yes

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LotSize : 4000

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Intellectual Capital (IC)	78,337.23
Net Worth (NW)	67,726.79
Intrinsic Worth (IW)	146,064.00
Market Cap (MC)	84,987.18
Economic Value Added	539.02

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	53.63%
IC Gross Margin (EBITDA/IC)	44.85%
IC Net Margin (NPT/IC)	15.14%
Knowledge Turnover (Sales/IC)	0.51
Market to Intrinsic Value (MC/IW)	0.58

As Of	Intrinsic Value	Market Price
30 Sep 2020	Rs. 279.20	Rs. 162.45
15 Jan 2021	-	Rs. 203.00

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 199.35	Reduce	Buy on Dips
KB > 50% : Yes		50 DMA : Rs. 192.41
0 < M2IV < 1 : Yes		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Dec-17
S
7506.95
7785.04
7016.43
4697.83
2742.38
2040.83
2035.95

Mar-18
S
7811.32
8098.33
6811.69
4405.19
2399.68
2004.68
1987.76

Jun-18
C
8250.18
8376.48
7054.84
4557.73
2653.92
2243.54
2277.87

Sep-18
C
8538.07
8718.20
7225.27
4592.27
2545.06
2316.63
2348.25

Dec-18
C
8735.75
8878.73
7837.54
5142.63
3105.44
2309.19
2345.97

Mar-19
C
9535.12
9687.91
8102.89
5386.96
3240.80
3035.34
3061.43

Jun-19
C
9179.63
9361.72
8268.52
5485.91
3379.42
2473.46
2502.80

Sep-19
C
9051.29
9260.46
7921.46
5046.79
2957.15
2523.64
2571.10

Dec-19
C
9364.36
9541.13
8247.01
5315.85
3105.52
2641.58
2672.03

Mar-20
C
10148.26
10507.65
8910.52
5891.92
3357.41
3313.47
3313.47

Jun-20
C
9457.40
9816.72
7673.83
4715.02
2512.32
2048.42
2048.42

Sep-20
C
9529.68
9831.00
8795.57
5900.74
3897.47
3094.10
3094.10

* C - Consolidated, S - Standalone