As of February 2025, the total installed power generation capacity stands at ~470 GW, with coal remaining the dominant source but renewable energy expanding rapidly, particularly solar and wind power. The sector is expected to benefit from rising electricity demand, projected to peak at 273 GW in June 2025, driven by industrial and commercial activities.
Government initiatives, such as the push for nuclear energy and investments in solar and wind technologies, are bolstering the sector’s growth. The country aims to achieve a non-fossil fuel capacity of 500 GW by 2030, with renewable energy playing a crucial role.
Following are a few power stocks with a PEG ratio of less than 1 to keep in your watchlist:
Adani Power Limited
With a market cap of Rs. 1.99 lakh crores, the shares of the largest private thermal power producer in India surged 3 percent on BSE to hit an intraday high at Rs. 524.35 on Friday.
Adani Power has reported a low PEG ratio of 0.17, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 57.1 percent and a Return on Capital Employed (ROCE) of 32.2 percent.
In Q3 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 13,671 crores, a rise of 5.2 percent YoY, accompanied by a net profit growth of nearly 7.4 percent YoY to Rs. 2,940 crores, during the same period.
Adani Power Limited is engaged in the sale of power under long-term Power Purchase Agreements (PPAs), Supplemental Power Purchase Agreements (SPPAs), medium-term PPAs, and short-term PPAs, on a merchant basis and also engaged in trading, investment and other business activities.
TD Power Systems Limited
With a market cap of Rs. 6,356.7 crores, the stock surged around 8 percent on BSE to hit an intraday high at Rs. 412.55 on Friday.
TD Power has reported a low PEG ratio of 0.38, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 18.1 percent and a Return on Capital Employed (ROCE) of 25.4 percent.
In Q3 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 350 crores, a rise of 44 percent YoY, accompanied by a net profit growth of nearly 50 percent YoY to Rs. 45 crores, during the same period.
TD Power Systems Limited is engaged in the business of manufacturing AC generators and electric motors for various applications with reliable & efficient power solutions up to 200 MW, which are specifically designed and tailor-made to suit the needs of the customers based on their requirements and specifications.
Nava Limited
With a market cap of Rs. 13,694.4 crores, the stock surged 7.2 percent on BSE to hit an intraday high at Rs. 488.9 on Friday.
Nava has reported a low PEG ratio of 0.4, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 17.8 percent and a Return on Capital Employed (ROCE) of 16.3 percent.
In Q3 FY25, the company witnessed a decline in its revenue from operations, reaching Rs. 842 crores, a fall of 9.5 percent YoY, accompanied by a net profit growth of nearly 24 percent YoY to Rs. 353 crores, during the same period.
NAVA Limited is primarily engaged in the business of manufacturing and selling of ferro alloys, generation of power, and providing operation & maintenance services for power assets.
Tata Power Company Limited
With a market cap of Rs. 1.16 lakh crores, the shares of a leading integrated power company and a part of the Tata Group surged 3 percent on BSE to hit an intraday high at Rs. 368.95 on Friday.
Tata Power has reported a low PEG ratio of 0.4, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 11.3 percent and a Return on Capital Employed (ROCE) of 11.1 percent.
In Q3 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 15,391 crores, a rise of 5 percent YoY, accompanied by a net profit growth of nearly 10.4 percent YoY to Rs. 1,188 crores, during the same period.
The Tata Power Company Limited, India’s largest vertically integrated power company, is primarily engaged in the business of generation, transmission and distribution of electricity.
Written by Shivani Singh
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