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Top-5 Companies in the Power Sector in India

01 December 20235 mins read by Angel One
India's power sector is crucial for economic growth, aiming for sustainable energy sources. The sector is evolving, shifting towards renewable energy to meet growing demand and environmental goals.
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The power sector of India is one of the most diversified in the world. It is the most critical component of infrastructure, crucial for the economic growth and welfare of nations. The fundamental principle of the sector is to provide universal access to affordable power in a sustainable way. The sources of power generation include conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power. It also includes non-conventional sources such as wind, solar, agricultural and domestic waste. 

The demand for electricity in India has increased rapidly and is likely to rise in the future years. The government has identified 81 thermal units that will replace coal with renewable energy generation by 2026 to meet the country’s 500 GW renewable energy target and tackle the annual issue of coal demand-supply mismatch. In the following article, we will look at the top 5 power stocks in India.

Top 5 Power Stocks in India

Stock Name Market Cap (In ₹Cr) 5Y-CAGR
Rattanindia Enterprises Ltd 10,770.92 88.24
Adani Power Ltd 1,53,197.61 52.89
Jyoti Structures Ltd 1,040.63 48.12
JSW Energy Ltd 69,083.52 44.19
Tata Power Company Ltd 82,487.69 28.08

Note: The above stocks have been selected on the basis of 5Y- CAGR, and the data is as of November 28, 2023.

Let us delve into the operational and financial performance of the top power companies in India:

  1. RattanIndia Infrastructure Ltd: RattanIndia Infrastructure Ltd is involved in the business of providing consultancy to companies planning to venture into the business of generation, transmission and distribution of power or are in the process of setting up power generation plants. During 1H FY2024, the company’s revenue rose by 65% to ₹3,090 Cr against ₹1,872 Cr in 1H FY2023. Profit after tax for 1H FY2024 amounted to ₹319 Cr.
  2. Adani Power Limited: Adani Power Limited is a holding company engaged in providing electric power generation by coal-based thermal power plants and coal trading. The company generates 98% of its revenue from the power supply.  During 1H FY2024, the company witnessed a growth of 26% in total continuing revenue to ₹23,767 Cr. This was supported by higher operating capacity after the commissioning of the Godda plant and improved power offtake following growth in demand and lower imported fuel prices.
  3. Jyoti Structures Limited: Jyoti Structures Limited is an engineering, procurement and construction contracting company in the power transmission and distribution networks. The company operates in India and all over the world, with a presence in Asia, Africa and North America. It has manufacturing plants in Nashik, Raipur, and Dubai with a combined manufacturing capacity of 2,15,000 MT of Transmission line Towers. 
  4. JSW Energy Limited: JSW Energy Limited is an integrated power company primarily engaged in the generation and sale of power. During  Q2 FY2024, the company’s overall net generation soared by 29% YoY at 8.6 BUs. This was backed by strong merchant sales, organic RE capacity additions and contributions from the acquired* RE portfolio. The company’s total revenue rose by 30% YoY to ₹3,387 Cr on the back of incremental revenue from RE assets and higher merchant sales.
  5. Tata Power Company Ltd: Tata Power Company Limited is an integrated power company engaged in the generation, transmission, distribution and trading of electricity. It is also involved in the mining and trading of coal. At the end of 1H FY2024, the company had a capacity of 14,381 MW. 

Conclusion

The power sector in India plays a pivotal role in the nation’s economic growth and development, striving to provide universal access to affordable and sustainable energy sources. India’s diverse power generation mix, including conventional and non-conventional sources, reflects its commitment to meeting the growing demand for electricity while addressing environmental concerns. If you are interested in the above-mentioned stocks, open a demat account with Angel One today online. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples.

 

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