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Top energy power generation and distribution stocks

11 December 20235 mins read by Angel One
Top picks in India's energy industry benefit from government assistance and increased demand, resulting in market highs.
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As the global energy landscape undergoes a transformative shift, with the spotlight firmly fixed on clean and sustainable solutions, investors are seizing the opportunity to capitalize on this dynamic sector.

Analysing the power index

S&P BSE Power index is trading at its all-time high gaining more than 13% last week. On February 27, 2023, it made its low and since then rallied to a new all-time high recording an outstanding performance, zooming nearly 72% since then.

S&P BSE Energy Index also reflected the same by jumping more than 5% last week. On March 27, 2023, it made its low and since then rallied to a new all-time high recording an outstanding performance, zooming nearly 30% since then.

We think that favourable government policies for the sector, continuing peak power shortfalls, and the country’s transition to sustainable energy continue to drive energy and power-related equities. Among the top stock selections are Tata Power, NTPC, CESC, NHPC, and SJVN.

Recently, shares of Tata Power touched a new high amid a small market correction. Tata Power shares reached an all-time high of Rs 322.30, surpassing the previous record high of Rs 298 set on April 7, 2022. Tata Power’s market capitalization surpassed Rs 1 trillion for the first time. According to BSE statistics, Tata Power’s market capitalisation is now Rs 1.05 trillion.

Torrent Power also reached a new high of Rs 1,047, while SJVN, NLC India, Adani Power, NTPC, and CESC are among the major Power and Energy index gainers in the recent year.

Make-In-India and PLI Push

The government’s emphasis on achieving ‘electricity for All’ has hastened capacity increase throughout the country, as well as the development and reinforcement of electricity transmission and distribution networks. Given the government’s massive push towards ‘Make-In-India,’ the PLI (Production Linked Incentive) Scheme, increasing industrialisation, improving incomes and standards of living, and pushing for increased penetration of electric vehicles in the transportation sector, among other things, demand for electricity in India is expected to grow at a sustained rate.

Here is the list of top energy power generation and distribution stocks:

Company Name CMP (Rs) Market Capital (Rs Cr) Promotor Holding 1 Year Returns
SJVN Ltd  90.35 35505.69 81.80% 136.63%
NLC India Ltd  190.90 26470.88 79.20% 108.82%
Torrent Power Ltd  953.70 45790.76 53.60% 80.08%
Adani Power Ltd  529.70 204224.87 70.00% 70.15%
NTPC Ltd 285.85 276936.42 51.10% 69.48%
CESC Ltd  119.25 15807.42 52.10% 55.06%
Reliance Power Ltd  24.70 9413.62 24.50% 53.61%
NHPC Limited  63.15 63434.37 71.00% 53.41%
JSW Energy Ltd  456.70 74983.37 73.40% 52.68%
Tata Power Company Ltd  329.55 105318.38 46.90% 50.52%
Power Grid Corporation of India Ltd 230.40 214471.91 51.30% 42.83%
Indian Renewable Energy Dev Agency Ltd  85.00 22851.37 75.00% 41.67%
Adani Energy Solutions Ltd 1134.50 126552.57 73.20% 26.13%
Indian Energy Exchange Ltd  154.30 13720.78 0.00% 6.72%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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