Synopsis:
Power Sector stocks like NTPC, NLC India, NHPC, Nava, and KPI Green Energy are trading below the industry P/E, showing potential as undervalued stocks with strong fundamentals and steady quarterly performance.
Investors seeking opportunities in the power sector may find potential in stocks trading below the industry average P/E, as these companies could offer undervalued entry points relative to their peers.
Focusing on such stocks can help identify companies with strong fundamentals and growth prospects that are temporarily underpriced by the market, making them worthy additions to a watch list.
Below are list of power sector stocks trading below the industry P/E
1. NTPC Ltd
Founded in 1975 and headquartered in New Delhi, NTPC Limited is a leading integrated power company in India. It operates across generation and related segments, producing electricity from fossil fuels, hydro, solar, wind, nuclear, and other renewable sources, while also participating in coal mining and energy trading activities.
NTPC Ltd has a market value of Rs. 3,37,540.95 crore, is trading at Rs. 348.05, up by 0.13 percent from its previous day close price of Rs. 347.60 per equity share. At the moment, the company’s P/E ratio is 14.1x lower as compared to its industry P/E 30.5x. The company’s ROE and ROCE are 12.1 percent and 9.95 percent respectively, and the D/E ratio of 1.36, indicates the company’s financial performance.
In Q1FY26, the company reported a revenue of Rs. 47,065 cr, down 3.0 percent YoY from Rs. 48,529 cr in Q1FY25 and down 5.6 percent QoQ from Rs. 49,834 cr in Q4FY25. Profit for the quarter rose 10.9 percent YoY to Rs. 6,108 cr from Rs. 5,506 cr in Q1FY25 but fell 22.7 percent QoQ compared to Rs. 7,897 cr in Q4FY25, indicating strong margin management despite lower top-line performance.
2. NLC India Ltd
NLC India Limited, founded in 1956 and headquartered in Cuddalore, is engaged in lignite and coal mining as well as power generation through thermal, solar, and wind plants. The company operates lignite mines in Tamil Nadu and Rajasthan, coal mines with 20 MTPA capacity, and has a total installed power capacity of 5,300 MW (thermal) and 1,483.89 MW (renewable), serving state utilities, commercial, and industrial customers. Formerly Neyveli Lignite Corporation, it was renamed NLC India Limited in 2016.
NLC India Ltd has a market value of Rs. 39,165.55 crore, is trading at Rs. 282.64, up by 0.82 percent from its previous day close price of Rs. 280.35 per equity share.At the moment, the company’s P/E ratio is 13.7x lower as compared to its industry P/E 30.5x. The company’s ROE and ROCE are 14.5 percent and 10.5 percent respectively, and the D/E ratio of 1.20, indicates the company’s financial performance.
In Q1FY26, the company reported revenue of Rs. 3,826 cr, up 13.3 percent YoY from Rs. 3,376 cr in Q1FY25 and slightly lower by 0.3 percent QoQ from Rs. 3,836 cr in Q4FY25. Net profit rose sharply to Rs. 839 cr, a 47.9 percent YoY increase from Rs. 567 cr, and up 79.3 percent QoQ from Rs. 468 cr in Q4FY25, reflecting strong operational performance.
Also read: Tata Motors and 2 other stocks leading India’s EV bus market in 2025
3. NHPC Ltd
NHPC Limited, founded in 1975 and based in Faridabad, generates, sells, and trades electricity from hydro, wind, and solar power plants in India and Nepal. The company also provides construction, maintenance, and consultancy services for power projects, rural roads, and electrification, serving bulk customers including state and private electricity utilities.
NHPC Ltd has a market value of Rs. 88,044.73 crore and is trading at Rs. 87.67, up by 1.61 percent from its previous day close price of Rs. 86.29 per equity share. At the moment, the company’s P/E ratio is 28.8x lower as compared to its industry P/E 30.5x. The company’s ROE and ROCE are 7.53 percent and 7.42 percent respectively, and the D/E ratio of 1, indicates the company’s financial performance.
In Q1FY26, the company reported revenue of Rs. 3,214 cr, up 19.3 percent YoY from Rs. 2,694 cr in Q1FY25 and 36.9 percent QoQ from Rs. 2,347 cr in Q4FY25. Net profit rose to Rs. 1,131 cr, a 2.6 percent YoY increase from Rs. 1,102 cr and a 22.9 percent QoQ gain over Rs. 920 cr in Q4FY25.
4. Nava Ltd
Nava Limited, founded in 1972 and headquartered in Hyderabad, operates in ferroalloy manufacturing, energy, mining, agribusiness, and O\&M services across India and internationally. It runs coal power plants in India and Zambia, produces ferrochrome, silicon, and silico-manganese, mines and sells coal, manages agricultural plantations, distributes pharmaceuticals, and provides power plant operation and maintenance services.
Nava Ltd has a market value of Rs. 20,020.93 crore and is trading at Rs. 708, up by 0.70 percent from its previous day close price of Rs. 703.10 per equity share. At the moment, the company’s P/E ratio is 19.6x lower as compared to its industry P/E 30.5x. The company’s ROE and ROCE are 15 percent and 17.2 percent respectively, and the D/E ratio of 0.12, indicates the company’s financial performance.
In Q1FY26, the company reported revenue of Rs. 1,193 cr, down 2.4 percent YoY from Rs. 1,222 cr in Q1FY25 but up 17.2 percent QoQ from Rs. 1,018 cr in Q4FY25. Net profit stood at Rs. 399 cr, a 10.5 percent decline YoY from Rs. 446 cr, yet a 31.7 percent increase QoQ from Rs. 303 cr in the previous quarter.
5. KPI Green Energy Ltd
KPI Green Energy Limited, incorporated in 2008 and based in Surat, is an independent power producer in India operating under the Solarism brand. The company develops, owns, operates, and maintains renewable energy projects, offering solar, wind, hybrid energy solutions, and battery storage systems. It also provides land for third parties and operates as a captive power producer, having rebranded from K.P.I. Global Infrastructure Limited in April 2022.
KPI Green Energy Ltd has a market value of Rs. 9,430.93 crore and is trading at Rs. 478.40, up by 2.84 percent from its previous day close price of Rs. 465.20 per equity share.
At the moment, the company’s P/E ratio is 26.2x lower as compared to its industry P/E 30.5x. The company’s ROE and ROCE are 19.7 percent and 17.5 percent respectively, and the D/E ratio of 0.61, indicates the company’s financial performance.
In Q1FY26, the company reported revenue of Rs. 603 cr, up 73.3 percent YoY from Rs. 348 cr in Q1FY25 and 6.0 percent QoQ from Rs. 569 cr in Q4FY25. Net profit rose to Rs. 111 cr, marking a 68.2 percent YoY increase from Rs. 66 cr and a 6.7 percent QoQ increase from Rs. 104 cr in the previous quarter.
Written by Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
