4 Power Sector Stocks From Emkay Global That Could Jump Upto 44.29%

There are four power companies whose share price Emkay Global feels will rally by upto 44.29% and so asked investors to buy stock of these companies. Emkay Global believes that growth in the power generation happens in H2, it usually is favourable for thermal units because of a typically-strong Q4.

Emkay global explains that based on past data for several years, thermal generation in any H2 in the past has been 106% of the H1, while RE/Hydro H2 generation has been 77%/58% of the H1. We believe that as demand sees traction, companies with large under-utilized capacity, would benefit.

In the last two months, the brokerage noticed that power generation has seen double-digit growth (10.6% YoY), with some moderation in Feb '23 (8.3% YoY). On a three-year CAGR basis, it stands at roughly 5% CAGR. It believes that the demand will continues to grow from January to June because of summer heat, more cooling appliances like air conditioners, fans and refrigerators are used to cool off.

So more energy usage means, more power demand and currently companies Like NTPC, NHPC, CSEC and Power Grid Corporation have potential to generate power and has several projects that will show improvement.

Following are the details of the potential upside seen from Emkay Global

Company Name	Latest Market price (Rs/share)	Target Price(Rs/share)	Potential Upside
NTPC	179.45	200	12.99%
NHPC	40.79	51	27.5%
CESC	71.43	101	44.29%
Power Grid Corporation	225.85	250	10.13%

Disclaimer:

The stock has been picked from the brokerage report of Emkay Global, Greynium Information Technologies and the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.