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Emkay Global Picks 4 Power Sector Stocks After Demand Bounces Back Post Monsoons, Recommends Buy

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Leading brokerage firm Emkay Global picks 4 stocks from the power sector to invest. The brokerage in its Indian Equity Research report on the power sector suggests "buy" CESC Limited, NHPC Limited, NTPC Limited, and Power Grid Corporation of India Limited. The brokerage claims a potential upside of up to 32% in their share prices from the current level.

 

According to the brokerage, Power demand growth rebounded to double-digits in Nov-22, leading to 5.5% YoY generation growth in the first two months of Q3FY23. Generation was flattish in Oct-22, due to heavy rains. Generation from thermal units was up 5.7% YoY, while RE generation was up 11% YoY. On a 3-year CAGR basis, generation is up 5.2%, with thermal/RE growth at ~5%/~15%, respectively.

StocksTarget Price (Rs)Potential Upside (%)
CESC10132
NHPC5121
NTPC20018
Power Grid Corporation25015

 1. CESC Limited

1. CESC Limited

Emkay Global has placed a buy call on CESC's stock with a target price of Rs 101 apiece. The brokerage claims a possible upside of 32% from its current level. 

On NSE, the current market price of the stock is Rs 76.45 apiece. The stock has given mixed returns over the past 5 years. In 1 week, it moved up by 2.07%, whereas, in 3 months, it fell by 7.78%. In 1 year, it fell by 13.13%. In the last 3 years, it moved up by 5.45% and in the last 5 years, it fell by 24.18%. 

CESC is a small-cap power sector company generating and distributing power in Kolkata and Howrah. It has a market cap of Rs 10,133.99 crore.

2. NHPC Limited
 

2. NHPC Limited

Emkay Global placed a buy call on NHPC with a target price of Rs 51 apiece. It sees a potential upside of 21% considering the given target price. 

The Current Market Price (CMP) of the stock on NSE is 42.20 apiece. The stock has fallen 3.87% in 1 month, whereas, in 3 months it grew 12.09%, respectively. The stock has given 25.22% positive returns in 1 year, 76.2% in 3 years and 49.12% in 5 yeras, respectively.

NHPC is a Miniratna Category-1 CPSE under the ownership of the Ministry of Power. governemnt of India. It is a mid cap stock with a market capitalisation of Rs 42,390.05 crore.

3. NTPC Limited

3. NTPC Limited

Emkay Global analyst recommends "buy" NTPC with a target price of Rs 200 apiece. It sees 18% potential gains with the given target price if the stock is purchased at the current market price. 

The current market price (CMP) of the stock on NSE is Rs 170.35 apiece. The stock in the past 1 month fell by 3.13%. In a year, it moved up by 33.87%. In 3 years it moved up by 51.22%. In 5 years it moved up by 13.31%. 

NTPC is a large-cap Maharatna company under the ownership of the Ministry of Power, Government of India. It has a market cap of 1,65,182 crore. 

4. Power Grid Corporation of India Limited

4. Power Grid Corporation of India Limited

Emkay Global has assigned "buy" rating to  Power Grid Corporation's stock with a target price of Rs. 250 apiece. With the given target price, the brokerage sees a 15% potential upside in its share price from the current level. 

The current market price (CMP) of the stock is Rs 217.80 apiece. In the past 1 month has fallen 4.47%. In a year, it gave 6.35%, in 3 years, it gave 55.63% and in 5 years, it gave 42.98% positive returns. 

Power Grid Corporation is a large-cap Maharatna company under the ownership of the Ministry of Power, Government of India. It has a market cap of 1,51,925 crore. 

Disclaimer

Disclaimer

The stocks have been picked from the brokerage report of Emkay Global. Greynium Information Technologies, 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 check with certified experts before making any investment decision.

Story first published: Friday, December 9, 2022, 7:30 [IST]
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