Power Grid Corporation of India (POWERGRID) is a prominent public sector undertaking responsible for owning and operating India’s national electricity grid. As one of the largest power transmission company in India, it manages an extensive transmission network spanning over 172,192 circuit kilometers. Recognized as a pivotal player in India’s power sector, POWERGRID’s stock is highly regarded as one of the most popular blue-chip stocks within the Indian stock market. Read this article to know why you can consider investing in this stock.
Power Grid’s Weekly Chart
POWERGRID’s stock has performed well in recent years, giving a return of over 150% in the past three years.
From 2020 to 2023, its stock price witnessed a substantial surge, soaring to 208, which translates to a remarkable return of over 150 percent during this period. This meteoric rise is a testament to the company’s consistent performance and its alignment with India’s ambitious economic growth.
Factors Driving Growth
There are a number of factors that are driving POWERGRID’s growth. One of the key factors is India’s growing economy. According to a recent report by S&P Global Market Intelligence, India is expected to become the world’s third-largest economy by 2030 and this will lead to a significant increase in demand for electricity. POWERGRID is well-positioned to benefit from this increased demand, as it has a strong transmission network in place.
Another factor driving POWERGRID’s growth is the government’s focus on renewable energy. The Indian government has set ambitious targets for renewable energy capacity addition, and POWERGRID is playing a key role in integrating renewable energy into the grid. The company is also investing in new technologies such as smart grids and energy storage systems to improve the efficiency and reliability of the grid.
Backbone of Telecom Infrastructure
Power Grid’s commitment to the telecom sector is further evident in the exceptional performance of its backbone telecom network, which boasts an availability rate of more than 99.5%. This reliability is vital for seamless communication across the nation, supporting businesses, government departments, public sector units, state governments, and defense establishments.
EV Charging Infrastructure
POWERGRID is promoting e-mobility by adopting Electric Vehicles (EV) for its own use and by installing fast EV charging stations across the country. The company has plans to install 10,000 EV charging stations by 2025. This initiative will help to boost the adoption of EVs in India and create new revenue opportunities for POWERGRID.
How Power Grid Will Benefit from India’s Growth
As India’s economy grows, there will be a significant increase in demand for electricity. POWERGRID is well-positioned to benefit from this increased demand, as it has a strong transmission network in place. The company is also investing in new technologies to improve the efficiency and reliability of the grid. The government’s focus on renewable energy and e-mobility will also benefit POWERGRID.
For investors exploring opportunities in the Indian economy, energy sector, and government support, Power Grid impressive growth and these underlying factors make it a noteworthy consideration. However, due diligence and individual financial goals should guide investment decisions.
Disclaimer: (This information is provided solely for informational purposes. It is important to note that investing in the market or a business idea involves market risks. Before investing money as an investor/ owner/ partner, always consult an expert. DNP News Network Private Limited never advises to invest money on stocks or any specific business idea. We will not be liable for any financial losses.)
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER
