Jefferies raises India power demand estimate after strong October

Power Grid of India

Today 05:44

** Jefferies raises its forecast to 9% for growth in India's power demand for fiscal year 2027, from earlier forecast of 7%
** Says, power generation up 24% so far in October, highest for a month in last 15 years, barring the post-COVID year of 2021
** Says, FY28 estimate of 6% growth in power demand could also rise, amid news reports of El-Nino recurring in calendar year 2027
** Brokerage firm says Adani Energy ADAI.NS and JSW Energy JSWE.NS are its top picks among private sector power cos; shares rise 2.6% and 4.5%, respectively
** Adds, visibility is improving on client-side tie-ups which should help re-rate the segment as earnings volatility reduces
** "We also like NTPC as execution ramp-up contributes to earnings growth and leads to stock returns even with no re-rating," Jefferies adds
** NTPC NTPC.NS and Power Grid Corporation PGRD.NS rise 1.5% and 3.5%, respectively

 (Reporting by Vivek Kumar M)
 ((VivekKumar.M@thomsonreuters.com;))