As of late 2024, India’s total electricity generation capacity has reached ~452.69 GW, with renewable energy sources contributing a substantial portion of this mix.
The electricity demand is projected to accelerate at a CAGR exceeding 7 percent, driven by factors such as increased electrification, the rise electric vehicles (EVs), and the expansion of data centres. Peak demand is expected to reach around 318 GW by 2029, with significant contributio from railway electrification and infrastructure project
Following are a few PSU power stocks trading at a discount of up to 43% to keep in your watchlist:
1. Power Grid Corporation of India Limited
With a market cap of Rs. 2.7 lakh crores, the stock surged by around 1.2 percent on BSE to Rs. 305.45 on Saturday. The shares of PGCIL have delivered positive returns of nearly 9 percent in one year but around 6 percent of negative returns in one month.
The stock hit its 52-week high at Rs. 366.2 on 25th September 2024, and compared to its Saturday closing price of Rs. 291, the stock is trading at a discount of nearly 21 percent.
The company reported a marginal growth in its revenue from operations, showing a year-on-year rise of around 0.09 percent to Rs. 11,278 crores in Q2 FY25, and a rise of around 0.3 percent in net profit to Rs. 3,793 crore
PGCIL is principally engaged in the business of implementation, operation and maintenance of Inter-State Transmission Systems (ISTS), Telecom and consultancy services.
2. NTPC Limited
With a market cap of Rs. 3.08 lakh crores, the stock surged by around 2 percent on BSE to Rs. 330.8 on Saturday. The shares of NTPC have delivered negative returns of nearly 1 percent in one year, as well as around 0.2 percent returns in one month.
The stock hit its 52-week high at Rs. 448.3 on 30th September 2024, and compared to its Saturday closing price of Rs. 317.65, the stock is trading at a discount of nearly 29 percent.
The company reported a marginal growth in its revenue from operations, showing a year-on-year rise of around 5.2 percent to Rs. 45,053 crores in Q3 FY25, but a decline of around 0.7 percent in net profit to Rs. 5,170 crore
NTPC (National Thermal Power Corporation) Limited is primarily involved in the generation and sale of bulk power to State power utilities, along with providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining.
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3. NHPC Limited
With a market cap of Rs. 79,245.3 crores, the stock surged by around 2.7 percent on BSE to Rs. 82.62 on Saturday. The shares of NHPC have delivered negative returns of nearly 15 percent in one year, as well as around 4 percent returns in one month.
The stock hit its 52-week high at Rs. 118.45 on 15th July 2024, and compared to its Saturday closing price of Rs. 79, the stock is trading at a discount of nearly 33 percent.
The company reported a marginal growth in its revenue from operations, showing a year-on-year rise of around 4 percent to Rs. 3,052 crores in Q2 FY25, but a decline of around 37 percent in net profit to Rs. 1,069 crore
NHPC, a Mini Ratna category I public sector utility, is the Government of India’s flagship hydroelectric generation company. It is primarily involved the generation and sale of bulk power to various Power Utilities.
4. SJVN Limited
With a market cap of Rs. 38,276.2 crores, the stock surged by around 6.2 percent on BSE to Rs. 103.39 on Saturday. The shares of SJVN have delivered negative returns of nearly 26 percent in one year, as well as around 13 percent returns in one month.
The stock hit its 52-week high at Rs. 170.45 on 5th February, and compared to its Saturday closing price of Rs. 97.4, the stock is trading at a discount of nearly 43 percent.
The company reported a significant growth in its revenue from operation showing a year-on-year rise of around 17 percent to Rs. 1,026 crores in Q2 FY25, and a marginal rise of around 0.4 percent in net profit to Rs. 441 crores.
SJVN Limited is engaged in the business of electricity generation, along with providing consultancy for hydropower projects.
Written by Shivani Singh
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