Morgan Stanley estimates that India will invest over $550 billion in energy security over the next decade, emphasizing the country’s focus on energy security amid the ongoing momentum in energy transition.
Currently, India is undergoing a phase of energy transition where power demand is on the rise. However, concerns about the supply are becoming increasingly complicated.
Morgan Stanley forecasts a compound annual growth rate (CAGR) of 7.4% for Indian power demand from FY24 to FY32. The brokerage anticipates a worsening supply situation due to delays in coal- and hydro-based plants and lower-than-expected additions to renewable capacity.
Based on this factor Morgan Stanley gave overweight, underweight and Equal weight ratings in power utility sector stocks.
NTPC Ltd
NTPC Ltd shares gained 4% on Thursday after Morgan Stanley recommended an Overweight rating on the stock. The brokerage firm upgraded NTPC to a target price of ₹390 per share, with an upside of 15% from Friday’s close price.
On Friday, NTPC shares closed at ₹338 per share, down 0.47% from the previous close price on the National Stock Exchange.
NTPC Ltd’s revenue has declined by 4 percent year on year, from ₹ 44,602 crore in Q3FY23 to ₹42,820 crore in Q3FY24. During the same period, Net profit increased by 7% from ₹4,854 crores to ₹5,209 crores.
NTPC Ltd shares have gained 57% in the last six months and 103% in a year.
Power Grid Corporation of India Ltd
Power Grid Corporation shares gained 3.5% on Thursday after Morgan Stanley recommended an Overweight rating on the stock. The brokerage firm upgraded the company’s target price of ₹296 per share, with an upside of 7.6% from Friday’s close price.
On Friday, Power Grid Corporation of India shares closed at ₹275 per share, down 2.41% from the previous close price on the National Stock Exchange.
Power Grid Corporation of India Ltd’s revenue has increased by 2.5 percent year on year, from ₹11,262 crores in Q3FY23 to ₹11,550 crores in Q3FY24. During the same period, Net profit increased by 11% from ₹3,645 crores to ₹4,028 crores.
Power Grid Corporation of India Ltd shares have gained 52% in the last six months and 74% in a year.
Bharat Heavy Electricals Ltd
BHEL shares gained 6% on Thursday after Morgan Stanley recommended equal weight on the stock. The brokerage firm upgraded BHEL to ‘equal-weight’ and raised its target price to ₹ 220 per share.
On Friday, BHEL shares closed at ₹226 per share, down 0.75 % from the previous close price on the exchange.
BHEL revenue has increased by 5 percent year on year, from ₹ 5,263 crore in Q3FY23 to ₹5,504 crore in Q3FY24. During the same period, Net profit reduced from ₹ 42 crores to a loss of ₹149 crores.
Bharat Heavy Electricals Ltd shares have gained 128% in the last six months and 212% in a year.
Tata Power Company Ltd
Tata Power Company Ltd shares gained 2.3% on Thursday after Morgan Stanley recommended an Overweight rating on the stock. The brokerage firm upgraded the company’s target price of ₹308 per share.
On Friday, Tata Power Company Ltd shares closed at ₹376 per share, down 0.71% from the previous close price on the exchange.
Tata Power Company Ltd’s revenue has increased by 3.6 percent year on year, from ₹14,129 crores in Q3FY23 to ₹14,651 crores in Q3FY24. During the same period, Net profit increased by 2.2% from ₹1,052 crores to ₹1,076 crores.
Tata Power Company Ltd shares have gained 61% in the last six months and 85% in a year.
Torrent Power Ltd
Torrent Power Ltd shares gained 9.2% on Thursday after Morgan Stanley recommended an Underweight rating on the stock. The brokerage firm upgraded the company’s target price of ₹940 per share.
On Friday, Torrent Power Ltd shares closed at ₹2,650 per share, up 2.80 % from the previous close price on the National Stock Exchange.
Torrent Power Ltd revenue has declined by 1.2 percent year on year, from ₹6,443 crores in Q3FY23 to ₹6,366 crores in Q3FY24. During the same period, Net profit has declined by 46% from ₹695 crores to ₹374 crores.
Torrent Power Ltd shares have gained 92% in the last six months and 138% in a year.
Written by Omkar Chitnis
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