Shares of Power Grid Corp. of India Ltd have underperformed over the last two years, as the moderation in investments in the transmission sector resulted in a slowing down in order flow for the company.
Compared to a 5.9% gain in the Nifty 500 index, the Power Grid stock lost 7% in the last two years. As a result, price-earnings valuations have fallen below 10 times, and the stock has a dividend yield of 5%.
But things are gradually picking up. Last week, the company said it won two intra-state transmission system projects under tariff-based competitive bidding.
