India’s power sector is a critical component of its economy, with an installed capacity of approximately 442 GW as of March 2024. The country ranks as the third-largest producer of electricity globally, generating 1,949 TWh in FY 2023-24, driven mainly by coal (around 55%) and renewable sources (about 21%)
Here are the power stocks to buy with a potential upside of 36%;
Power Grid Corporation of India Ltd
Power Grid Corporation of India Limited is a power transmission business that plans, implements, operates, and maintains the Inter-State Transmission System (ISTS), as well as provides communications and consultancy services. Transmission Services, Consultancy Services and Telecom Services are the three business sectors of the company.
With a market capitalization of Rs 2.96 lakh crore, the shares were trading at Rs 319 per share decreasing around 1 percent as compared to the previous closing price.
Macquarie, one of the well-known brokerages globally, gave a ‘Buy’ call on the power stock with a target price Rs 380 apiece, indicating a potential upside of 19 percent from Wednesday’s price of Rs 319 per share.
NTPC Limited is an India-based power-generating company. The Company is primarily involved in the generation and sale of bulk power to State Power Utilities. Its segments include Generation and Others. Its generation segment is engaged in the generation and sale of bulk power to state power utilities.
With a market capitalization of Rs 3.72 lakh crore, the shares were trading at Rs 384 per share increasing around 1 percent as compared to the previous closing price.
Macquarie, one of the well-known brokerages globally, gave a ‘Buy’ call on the power stock with a target price Rs 475 apiece, indicating a potential upside of 24 percent from Wednesday’s price of Rs 384 per share.
REC Limited is an India-based infrastructure finance business. The Company’s offerings include interest-bearing loans to state electricity boards, state power utilities/departments, and the private sector for all aspects of power infrastructure. It focuses on one business segment: loans to Dower, logistics, and infrastructure.
With a market capitalization of Rs 1.34 lakh crore, the shares were trading at Rs 511 per share decreasing around 1 percent as compared to the previous closing price.
Macquarie, one of the well-known brokerages globally, gave a ‘Buy’ call on the power stock with a target price Rs 660 apiece, indicating a potential upside of 29 percent from Wednesday’s price of Rs 511 per share.
Power Finance Corporation Limited is primarily engaged in providing financial assistance to the power sector. The Company’s fund-based products include project term loans, lease financing for the purchase of equipment, and short/medium-term loans to equipment manufacturers.
With a market capitalization of Rs 1.53 lakh crore, the shares were trading at Rs 464 per share decreasing around 0.52 percent as compared to the previous closing price.
Macquarie, one of the well-known brokerages globally, gave a ‘Buy’ call on the power stock with a target price Rs 630 apiece, indicating a potential upside of 36 percent from Wednesday’s price of Rs 464 per share.
Written by:- Abhishek Singh
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