Synopsis: JM Financial highlights eight power and renewable energy stocks including Suzlon, Adani Green, IEX, and JSW Energy citing strong summer demand outlook, with Buy ratings and potential upside of up to 22% driven by rising electricity needs.
India’s power sector is witnessing strong momentum, driven by rising electricity demand, rapid urbanisation, and industrial growth. A hotter-than-usual summer is expected to push peak power consumption to new highs, benefiting generation, transmission, and trading companies across the value chain.
At the same time, the sector’s long-term outlook remains positive, supported by a strong policy push toward renewable energy, expanding capacity in solar and wind, and ongoing investments in grid infrastructure. This transition toward cleaner energy is creating growth opportunities for both traditional and green power players.
India is well-prepared to meet a projected peak power demand of 270 GW this summer, according to Union Power Minister Manohar Lal. While the peak demand reached an all-time high of roughly 250 GW in May 2024, the government has ramped up its readiness to ensure a stable supply even as the use of electric appliances and EVs increases. This preparation includes adding significant capacity and strengthening the national grid, which has seen a 72% increase in transmission lines over the last decade.
Looking ahead, the ministry anticipates that demand will continue to surge, driven by the growth of AI, data centers, and electric vehicles, adding an estimated 30 GW of requirements over the next few years. To support this, India aims to establish a 900 GW transmission line by 2034. These long-term infrastructure goals are designed to keep pace with the nation’s energy transition and its commitment to reaching 500 GW of non-fossil fuel capacity.
Suzlon Energy Ltd
Suzlon is one of India’s leading renewable energy companies, primarily focused on wind energy solutions. It designs, manufactures, and installs wind turbine generators, and also provides operations and maintenance services.
With a market capitalisation of Rs. 71,977 cr, the shares of Suzlon Energy Ltd closed at Rs. 52.48 per share, down from its previous close of Rs. 52.94 per share. The brokerage has a ‘Buy’ rating with a target price of Rs. 64 per share, which is an increase of 22% from the current levels.
Inox Wind Ltd
Inox Wind is a prominent wind energy solutions provider in India, offering end-to-end services including project development, turbine manufacturing, installation, and maintenance. Part of the Inox Group, it focuses on utility-scale wind projects and has been expanding its footprint with new orders as India increases renewable energy capacity.
With a market capitalisation of Rs. 16,814 cr, the shares of Inox Wind Ltd closed at Rs. 97.29 per share, down from its previous close of Rs. 97.81 per share. This stock has an ‘Add’ rating with a set target price of Rs. 120 per share, which is 23% upside from the current level.
Adani Green Energy Ltd
Adani Green Energy is one of India’s largest renewable energy companies and a part of the Adani Group. It develops, owns, and operates large-scale solar and wind power projects. The company has aggressively expanded its renewable portfolio and aims to be among the world’s biggest green energy producers, contributing significantly to India’s clean energy targets.
With a market capitalisation of Rs. 1,90,182 cr, the shares of Adani Green Energy Ltd closed at Rs. 1154.60 per share, up from its previous close of Rs. 1126.80 per share. The brokerage maintains a ‘Buy’ rating with a target price of Rs. 1,204 per share, which is 4% upside from the current level.
Indian Energy Exchange Ltd
Indian Energy Exchange (IEX) is India’s premier power trading platform, enabling the buying and selling of electricity through competitive price discovery. It operates electronic trading systems for electricity, renewable energy certificates, and energy-saving certificates, helping improve efficiency and transparency in the country’s power market.
With a market capitalisation of Rs. 11,237 cr, the shares of Indian Energy Exchange Ltd closed at Rs. 125.05 per share, down from its previous close of Rs. 135.65 per share. It has an ‘Add’ rating with a target price of Rs. 145 per share, which is 16% upside from the current level.
CESC Ltd
CESC is a Kolkata-based integrated power company involved in electricity generation, transmission, and distribution. It supplies power to Kolkata and surrounding areas and has diversified into renewable energy and distribution ventures in other cities. The company is part of the RP-Sanjiv Goenka Group and is known for stable utility operations.
With a market capitalisation of Rs. 23,787 cr, the shares of CESC Ltd closed at Rs. 179.45 per share, up from its previous close of Rs. 171.50 per share. JM Financial maintains a ‘Buy’ rating on the stock with a target price of Rs. 196 per share, which is 9% upside from the current level.
Bharat Heavy Electricals Ltd
BHEL is a major public sector engineering and manufacturing enterprise in India, specializing in power plant equipment. It provides products and services for thermal, hydro, nuclear, and renewable energy sectors. Historically dominant in thermal power equipment, it is now pivoting toward cleaner energy technologies and infrastructure.
With a market capitalisation of Rs. 1,13,375 cr, the shares of Bharat Heavy Electricals Ltd closed at Rs. 325.60 per share, up from its previous close of Rs. 316.70 per share. This stock holds a ‘Buy’ rating with a target price of Rs. 345 per share, which is 6% upside from the current level.
Emmvee Photovoltaic Power Ltd
Emmvee is an Indian solar energy company focused on manufacturing photovoltaic modules and providing solar solutions. It serves both domestic and international markets, contributing to solar adoption in residential, commercial, and utility-scale projects. The company has been expanding its manufacturing capacity to align with India’s push for solar self-reliance.
With a market capitalisation of Rs. 18,070 cr, the shares of Emmvee Photovoltaic Power Ltd closed at Rs. 261 per share, down from its previous close of Rs. 265.55 per share. The stock is rated as a ‘Buy’ with a target price of Rs. 291 per share, which is 11.5% upside from the current level.
JSW Energy Ltd
JSW Energy Ltd is a leading Indian energy company and part of the JSW Group, headquartered in Mumbai. It is engaged in power generation, transmission, and trading, with a diversified portfolio that includes thermal, hydro, wind, and solar energy.
With a market capitalisation of Rs. 95,271 cr, the shares of JSW Energy Ltd closed at Rs. 542.15 per share, up from its previous close of Rs. 538.10 per share. The brokerage has issued a ‘Buy’ rating with a target price of Rs. 614 per share, which is 13% upside from the current level.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Top 8 Power Stocks Where JM Financial Sees Up to 22% Upside This Summer appeared first on Trade Brains.