As part of our Wealth Creator Series , today we look at Power Grid. This is one of the 39 stocks that were short-listed and passed through our stringent stock screen filters.
Power Grid has a monopoly over long-distance high voltage power transmission in the country. With a capacity of over 80,000 km (length of circuits in km), the company carries around 55 per cent of India's power supply. It is mandated to earn a fixed RoE of 15.5 per cent and thus affords earning visibilty. Verticals like telecom and consulting, whose returns are not regulated, help enhance its returns.