michaela57
New member
Powergrid owns and operates 45% of India’s electricity transmission network. It meets all the criteria for a good long term investment:
Link: https://opensourceinvestor.substack.com/p/powergrid-the-backbone-of-indias
Contents:
- Moat: the dominant player in transmission. Has 20~30 year contracts with assured ROEs. Is the government’s preferred vendor for large scale or complex transmission projects
- Long growth runway: increasing Indian power consumption and massive investments in new renewable power generation capacity
- Management execution: consistently exceeded regulatory benchmarks with 99%+ transmission system availability and demonstrated ability to execute large scale projects over the last decade
- Attractive valuation: limited downside possibility at current prices, with attractive returns on the upside. Risks to the growth trajectory: regulatory regime and tariff changes, competition by private players and fraud / corruption.
Link: https://opensourceinvestor.substack.com/p/powergrid-the-backbone-of-indias
Contents:
- Indian electricity demand
- Energy value chain
- Powergrid’s business model
- Management
- Financials
- Competitive advantages / moat
- Runway / future growth potential
- Risks
- Valuation
- Sources