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)	72,757.77
Net Worth (NW)	64,439.69
Intrinsic Worth (IW)	137,197.50
Market Cap (MC)	83,234.60
Economic Value Added	912.29

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	53.03%
IC Gross Margin (EBITDA/IC)	48.66%
IC Net Margin (NPT/IC)	16.00%
Knowledge Turnover (Sales/IC)	0.53
Market to Intrinsic Value (MC/IW)	0.61

As Of	Intrinsic Value	Market Price
31 Mar 2020	Rs. 262.25	Rs. 159.10
3 Aug 2020	-	Rs. 178.55

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 179.53	Accumulate	Buy
KB > 50% : Yes		50 DMA : Rs. 171.17
0 < M2IV < 1 : Yes		Vol-Price trend : Rising

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

Jun-17
S
7181.35
7389.83
6408.85
4277.71
2515.29
2052.41
2056.27

Sep-17
S
7252.84
7492.52
6714.56
4479.55
2612.27
2141.04
2172.70

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
S
8127.10
8427.67
7227.66
4777.05
2636.44
2240.54
2231.93

Sep-18
S
8283.03
8689.95
7379.39
4831.11
2521.58
2309.49
2303.76

Dec-18
S
8471.17
8890.21
7988.44
5383.70
3108.41
2331.17
2367.77

Mar-19
S
9218.08
9610.24
8185.58
5588.54
3222.55
3053.96
3018.79

Jun-19
S
8804.11
9228.37
8320.68
5661.63
3302.54
2427.89
2414.52

Sep-19
S
8684.98
9183.18
8055.11
5306.95
2930.81
2527.14
2507.58

Dec-19
S
8991.98
9496.90
8381.16
5578.75
3104.71
2673.49
2667.62

Mar-20
S
9704.47
10409.52
8777.20
5913.64
3309.29
3182.66
3117.44

* C - Consolidated, S - Standalone