On this page ▾
The market asks roughly as much of NTPC as of Power Grid.
At current prices, buyers of NTPC are assuming about 12.4% return on equity against 14.1% in its own record; for Power Grid it is 14.6% against 17.0%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: the two are worth roughly the same on the stock market.
- Record: NTPC has grown revenue faster: NTPC compounded at about 10% a year (FY2019–FY2026) and Power Grid at about 6% (FY2018–FY2026).
- What to watch: regulated equity growth at NTPC; capex on new lines at Power Grid.
| NTPC | Power Grid | |
|---|---|---|
| Price | ₹319 | ₹257 |
| Market cap | ₹3.09L Cr | ₹2.39L Cr |
| P/E | 10.4 | 14.8 |
| P/B | 1.52 | 2.38 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
Coal, regulation and a renewable future
NTPC is India's largest power generator and is majority-owned by the Government of India. Most of its capacity is coal-fired, with gas, hydro and a fast-growing renewable portfolio held largely through NTPC Green Energy, which was listed separately in November 2024.
The national grid, as a business
Power Grid Corporation of India, majority-owned by the Government of India, owns and operates most of the country's inter-state electricity transmission network — the high-voltage lines and substations that move power from where it is made to where it is used.
02The records side by side
NTPC has grown revenue faster: NTPC compounded at about 10% a year (FY2019–FY2026) and Power Grid at about 6% (FY2018–FY2026). By revenue, NTPC is about 4.0 times the size of Power Grid. NTPC kept 14.7% of revenue as net profit in FY2026; Power Grid kept 34.1% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: NTPC · Power Grid.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Regulated equity growthEvery rupee of approved capex adds to the base on which NTPC earns its allowed return.
- Plant availabilityFull fixed-cost recovery depends on keeping plants available to run.
- Capex on new linesBringing renewable power from deserts and coasts to cities needs a huge transmission build-out, which grows Power Grid's earning base.
- Allowed returnsThe regulated return on equity is the core of its profit.
05What could go wrong
- Regulatory changesA lower allowed return in a future tariff period would reduce value directly.
- Coal's long-term futureThermal plants may run less as renewables grow.
- Regulatory resetsA lower allowed return in a future tariff period would reduce value.
- ExecutionLand acquisition and right-of-way problems can delay projects.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is NTPC or Power Grid better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, NTPC trades at 10.4 times earnings and 1.52 times book value, and Power Grid at 14.8 times earnings and 2.38 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between NTPC and Power Grid?
NTPC is India's largest power generator and is majority-owned by the Government of India. Power Grid Corporation of India, majority-owned by the Government of India, owns and operates most of the country's inter-state electricity transmission network — the high-voltage lines and substations that move power from where it is made to where it is used.
Are NTPC and Power Grid valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for NTPC and Power Grid?
Worked backwards from the share price, NTPC needs about 12.4% return on equity and Power Grid about 14.6% return on equity, against 14.1% and 17.0% in their own records.