Shares of power companies like Torrent Power Ltd., NTPC Ltd., Power Grid Corporation of India Ltd., JSW Energy Ltd., among others were trading with gains of as much as 5% on Wednesday, March 19.Power stocks are rallying as generation increases amid strong summer demand.
In February 2025, power demand rose 6% year-on-year, adjusted for the 29 days in February 2024. Power generation is up 9% year-on-year so far in March. Year-to-date (YTD) demand is up 4% year-on-year and is expected to end at 4.5% in FY25E based on the February-March recovery.
Global brokerage firm Jefferies said that JSW Energy and NTPC remain its top picks, with price targets of ₹700 and ₹500, respectively.
The brokerage mentioned that power demand typically rises in summer due to soaring temperatures. It believes that demand will be a key driver for power stocks in the near term, in addition to the medium-term growth story.Axis Capital remains constructive on power stocks. The brokerage wrote in its note that electricity consumption in March 2025 has been strong so far, up 6.6% year-on-year.
In February 2025, power demand rose 6% year-on-year, adjusted for the 29 days in February 2024. Power generation is up 9% year-on-year so far in March. Year-to-date (YTD) demand is up 4% year-on-year and is expected to end at 4.5% in FY25E based on the February-March recovery.
Global brokerage firm Jefferies said that JSW Energy and NTPC remain its top picks, with price targets of ₹700 and ₹500, respectively.
The brokerage mentioned that power demand typically rises in summer due to soaring temperatures. It believes that demand will be a key driver for power stocks in the near term, in addition to the medium-term growth story.Axis Capital remains constructive on power stocks. The brokerage wrote in its note that electricity consumption in March 2025 has been strong so far, up 6.6% year-on-year.
Peak power demand in March 2025 has reached 235 GW so far, up 6.1% year-on-year, compared to 238 GW in February, which was up 6.9% year-on-year.
The country will likely witness an extreme summer, with more heatwave days during March – May period in most parts of India, according to an Indian Meteorological Department (IMD) forecast.
IMD expects above normal-temperature on most days this summer, except over Northeast India, extreme north India and southwestern and southern parts of Peninsular India.
