India's NTPC, JSW Energy top picks in power sector, Axis Capital says

HPL Electric & Power

29/11/2023 06:19

** India's rising demand for electricity can be met with a
final phase of coal capacity additions and better utilisation of
existing thermal capacity, Axis Capital says in a note
    ** Forecasts the evening deficit during non-solar hours to
exacerbate to 6% by FY27E (~15 GW) and 12% by FY32E (~42 GW)
    ** Sees longevity of the existing coal-based capacity with
limited room for shutdown in the next decade
    ** Identifies NTPC  NTPC.NS  and JSW Energy  JSWE.NS  as its
preferred picks in power sector; raises target price of NTPC to
300 rupees from 285 rupees earlier 
    ** JSWE target price raised to 486 rupees from 450 rupees
    ** Expects CESC  CESC.NS , Tata Power Company  TTPW.NS ,
Adani Power  ADAN.NS , Coal India  COAL.NS , NLC India
 NLCI.NS , Bharat Heavy Electricals  BHEL.NS , Larsen & Toubro
 LART.NS , GMR Power & Urban Infra  GMRP.NS , Siemens  SIEM.NS ,
Hitachi Energy India  HITN.NS , Genus Power Infrastructures
 GEOE.NS , HPL Electric & Power  HPLE.NS  and Adani Energy
Solutions  ADAI.NS  to also benefit from longevity of existing
coal-based capacity
    ** India's monthly electricity demand hit record highs for
four months in a row between May 2023 and August 2023

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Axis Capital's recommendations in India's power sector    https://tmsnrt.rs/46vmzBW
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 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))