India Grid Trust, commonly known as IndiGrid, stands as India’s pioneering listed power sector infrastructure investment trust, with sponsorship from KKR and Sterlite Power. This innovative entity represents a crucial player in India’s power sector, offering investors a unique opportunity to participate in the country’s growing energy infrastructure.
In this article, we will delve into a comprehensive exploration of IndiGrid, shedding light on its operations, assets, and the pivotal role it plays in shaping India’s energy landscape. From its inception to its growth trajectory, we will uncover all there is to know about this transformative investment trust.
About IndiGrid
IndiGrid, India’s premier infrastructure investment trust, was established in 2016 to oversee and operate power transmission and renewable energy assets in the country. Unlike traditional companies, it operates as an InvIT, with unit holders who are entitled to receive a minimum of 90% of the Net Distributable Cashflows semi-annually. IndiGrid’s diverse portfolio comprises 14 operational projects, encompassing 40 transmission lines spanning over 7,570 ckms and 11 substations boasting a 13,550 MVA transformation capacity, as of March 2021.
This trust is publicly listed on India’s NSE and BSE stock exchanges, with a market capitalization of ₹9,468 Crores and a current trading price of ₹135 as of November 5, 2023. With an experienced leadership team led by CEO Harsh Shah, IndiGrid offers a compelling opportunity for investors seeking stability and growth in India’s dynamic power sector.
IndiGrid’s Q2 FY24 Highlights
- IndiGrid (India Grid Ltd) reported a 69% decline in net profit, with Q2 profit at Rs 38.89 crore, compared to Rs 125.79 crore in the same period last year.
- Total expenses for the July-September quarter increased to Rs 683.39 crore from Rs 466.76 crore year-on-year.
- Total income during the same period rose to Rs 720.18 crore, up from Rs 595.91 crore in the previous year.
- The board of directors of IndiGrid Investment Managers Ltd approved a distribution of Rs 3.55 per unit for the second quarter of FY24, comprising interest, principal payment, and other income, with a record date of November 9, 2023, and payment scheduled for on or before November 18, 2023.
- The board also approved raising debt of up to Rs 1,300 crore through various sources, including term loans and non-convertible debentures.
- CEO Harsh Shah noted that the company’s strong financial performance was driven by robust operations and a significant acquisition of Virescent Renewable Energy Trust (VRET), resulting in a five-fold increase in solar capacity and a distribution per unit (DPU) of Rs 3.55 in the quarter.
Below are the trading platforms that you can use to purchase Indigrid shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| November 2023 | ₹145.80 | ₹126.78 |
| December 2023 | ₹150.61 | ₹130.97 |
As of November 5th, 2023, IndiGrid is currently trading at a price of ₹135 with a market capitalization of ₹9,468 crore. Analysts have projected a positive outlook for IndiGrid’s share price in the coming months. In November 2023, the share price is expected to range between a maximum of ₹145.80 and a minimum of ₹126.78.
Similarly, in December 2023, the price is predicted to fluctuate between a maximum of ₹150.61 and a minimum of ₹130.97. These projections reflect optimism about the company’s performance and potential growth, making it an intriguing investment opportunity for those eyeing the infrastructure sector.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹153.69 | ₹133.64 |
| February 2024 | ₹156.82 | ₹136.37 |
| March 2024 | ₹160.02 | ₹139.15 |
| April 2024 | ₹155.36 | ₹135.10 |
| May 2024 | ₹153.07 | ₹133.10 |
| June 2024 | ₹158.58 | ₹137.89 |
| July 2024 | ₹156.99 | ₹136.51 |
| August 2024 | ₹163.27 | ₹141.97 |
| September 2024 | ₹169.80 | ₹147.65 |
| October 2024 | ₹166.47 | ₹144.76 |
| November 2024 | ₹171.46 | ₹149.10 |
| December 2024 | ₹175.75 | ₹152.83 |
In 2024, IndiGrid’s share price is expected to exhibit a steady growth trajectory, according to market projections. The year begins with a predicted range of ₹133.64 as the minimum and ₹153.69 as the maximum for January. Subsequently, the share price is anticipated to maintain an upward trend, with February, March, and April seeing estimated ranges of ₹136.37-₹156.82, ₹139.15-₹160.02, and ₹135.10-₹155.36, respectively.
The positive outlook continues throughout the year, reaching a maximum price of ₹175.75 and a minimum of ₹152.83 in December 2024. These projections indicate a promising performance for IndiGrid, making it an enticing option for potential investors in the coming year.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹179.27 | ₹137.90 |
| February 2025 | ₹183.86 | ₹141.43 |
| March 2025 | ₹191.03 | ₹146.95 |
| April 2025 | ₹187.29 | ₹144.07 |
| May 2025 | ₹181.83 | ₹139.87 |
| June 2025 | ₹190.02 | ₹146.17 |
| July 2025 | ₹186.29 | ₹143.30 |
| August 2025 | ₹192.05 | ₹147.73 |
| September 2025 | ₹198.77 | ₹152.90 |
| October 2025 | ₹203.94 | ₹156.88 |
| November 2025 | ₹209.04 | ₹160.80 |
| December 2025 | ₹214.27 | ₹164.82 |
In 2025, IndiGrid’s share price is poised for substantial growth, as per market projections. The year begins with a robust forecast for January, with a minimum price of ₹137.90 and a maximum price of ₹179.27, indicating a strong start. This bullish trend continues throughout the year, with February, March, and April showcasing predicted price ranges of ₹141.43-₹183.86, ₹146.95-₹191.03, and ₹144.07-₹187.29, respectively. Investors can anticipate a consistently rising share price, as May, June, and July are expected to offer ranges of ₹139.87-₹181.83, ₹146.17-₹190.02, and ₹143.30-₹186.29.
The upward trajectory extends into the latter half of the year, with August, September, October, November, and December demonstrating maximum price projections of ₹192.05, ₹198.77, ₹203.94, ₹209.04, and ₹214.27, respectively. The corresponding minimum prices also increase progressively throughout the year. These forecasts suggest a favorable investment outlook for IndiGrid in 2025, making it an attractive option for potential investors looking for long-term growth and stability in the infrastructure sector.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹224.98 | ₹157.49 |
| 2027 | ₹247.48 | ₹173.23 |
| 2028 | ₹346.47 | ₹173.23 |
| 2029 | ₹299.97 | ₹149.99 |
| 2030 | ₹389.96 | ₹272.97 |
IndiGrid’s share price is projected to continue its upward trajectory from 2026 to 2030, offering a promising outlook for investors. In 2026, the share price is expected to range from a minimum of ₹157.49 to a maximum of ₹224.98, indicating significant growth potential. The upward trend continues into 2027, with a minimum of ₹173.23 and a maximum of ₹247.48, providing ample opportunities for investment. 2028 stands out as a potential banner year, with an even wider range, from ₹173.23 to an impressive ₹346.47.
The subsequent years, 2029 and 2030, maintain this positive trajectory with a projected minimum of ₹149.99 and a maximum of ₹299.97 in 2029, and ₹272.97 as the minimum and ₹389.96 as the maximum in 2030. These forecasts suggest that IndiGrid remains a compelling choice for long-term investors seeking substantial growth in the infrastructure sector.
Financial Condition Of IndiGrid: Last 5 Years
| Financial Data (in Rs. Crores) | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales | 666 | 1,243 | 1,677 | 2,222 | 2,332 |
| Expenses | 109 | 53 | 252 | 209 | 230 |
| Operating Profit | 557 | 1,190 | 1,425 | 2,013 | 2,101 |
| OPM (%) | 84% | 96% | 85% | 91% | 90% |
| Other Income | 8 | 36 | 35 | 52 | 82 |
| Interest | 230 | 415 | 687 | 1,050 | 1,011 |
| Depreciation | 181 | 310 | 430 | 665 | 704 |
| Profit before Tax | 155 | 500 | 342 | 349 | 469 |
| Tax % | 0% | -1% | 2% | 2% | 1% |
| Net Profit | 154 | 506 | 334 | 343 | 466 |
| EPS (Rs.) | 4.52 | 7.22 | 4.77 | 4.98 | 6.51 |
| Dividend Payout (%) | 221% | 126% | 194% | 241% | 48% |
IndiGrid’s financial condition over the last five years has demonstrated consistent growth and resilience. From 2019 to 2023, the company’s sales revenue has seen substantial progression, starting at Rs. 666 crores in 2019 and reaching Rs. 2,332 crores in 2023. Operating profit has also experienced remarkable growth, with an increase from Rs. 557 crores in 2019 to Rs. 2,101 crores in 2023. Despite some fluctuations in operating profit margins (OPM), which ranged from 84% to 96%, the company maintained healthy profitability levels. Other income, including non-operational earnings, increased steadily from Rs. 8 crores to Rs. 82 crores during this period.
On the financial side, IndiGrid managed its expenses effectively, keeping them in check. The company also showed a consistent commitment to paying dividends to its shareholders, with dividend payouts ranging from 48% to 241%. Notably, IndiGrid’s tax management improved over the years, with a reduction in the tax rate from 0% in 2019 to 1% in 2023.
Overall, IndiGrid’s financial performance indicates a robust and growing company, with a positive outlook for the future and an emphasis on providing returns to its investors through both profit and dividends.
FAQs
What is IndiGrid’s current market capitalization?
IndiGrid’s current market capitalization stands at ₹9,468 Crores as of November 5, 2023.
What is the current share price of IndiGrid?
IndiGrid is currently trading at ₹135 as of November 5, 2023.
What is the share price target for IndiGrid in 2023?
IndiGrid’s share price target for November 2023 ranges from a minimum of ₹126.78 to a maximum of ₹145.80, and in December 2023, it is projected to be between ₹130.97 and ₹150.61.
What is the share price target for IndiGrid in 2024?
In 2024, IndiGrid’s share price is expected to increase gradually, with a minimum of ₹133.64 in January and a maximum of ₹175.75 in December.
What is the share price target for IndiGrid in 2025?
For 2025, IndiGrid’s share price is projected to have a minimum of ₹137.90 in January and a maximum of ₹214.27 in December.
What is the share price target for IndiGrid in 2030?
Looking ahead to 2030, IndiGrid’s share price is estimated to reach a minimum of ₹149.99 and a maximum of ₹389.96.
What is the current Price-to-Earnings (P/E) ratio for IndiGrid?
The current P/E ratio for IndiGrid is 24.1.
How has IndiGrid’s dividend payout percentage evolved in recent years?
IndiGrid’s dividend payout percentage has shown variations, with the latest figure standing at 48% as of the last financial data available.
What contributed to IndiGrid’s strong financial performance in Q2 FY24?
IndiGrid’s robust financial performance in Q2 FY24 was attributed to robust operations and a significant acquisition, particularly Virescent Renewable Energy Trust (VRET), resulting in a five-fold increase in solar capacity and a distribution per unit (DPU) of Rs 3.55 for the quarter.
Where can one purchase IndiGrid shares?
IndiGrid shares can be purchased through various trading platforms, including Zerodha, Upstox, Groww, AngelOne, and ICICIDirect.
Conclusion: IndiGrid’s Resilient Growth and Future Potential in India’s Power Sector
In conclusion, IndiGrid, India’s pioneering infrastructure investment trust, has forged a remarkable path in the nation’s power sector. Established in 2016 with sponsorship from KKR and Sterlite Power, it has become a key player, offering investors a unique entry into India’s growing energy infrastructure landscape. IndiGrid stands out for its diverse portfolio, overseeing 14 operational projects that include 40 transmission lines and 11 substations. Its commitment to unit holders, who receive a minimum of 90% of the Net Distributable Cashflows semi-annually, reflects its focus on shareholder value.
Financially, IndiGrid has witnessed substantial growth over the past five years, with rising sales revenue and operating profit, demonstrating resilience and profitability. While the company maintains a commendable dividend payout of 161%, a low interest coverage ratio poses a challenge. Despite this, IndiGrid’s promising share price targets, impressive leadership, and market capitalization position it as an appealing investment choice in India’s dynamic power sector, promising stability and growth. It remains a transformative and forward-looking investment trust, poised for a bright future. IndiGrid’s journey exemplifies a success story in India’s infrastructure sector, and its outlook remains positive.
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