Power sector stocks are likely to remain in focus after global brokerage Bernstein initiated coverage on key players, highlighting strong structural opportunities in India’s energy landscape.
Bernstein has initiated coverage on Adani Power, JSW Energy and Tata Power with an “outperform” rating, assigning target prices of ₹177, ₹575 and ₹443 respectively. On the other hand, the brokerage has initiated coverage on NTPC Green with an “underperform” rating and a target price of ₹80.
The brokerage noted that India’s energy security has faced back-to-back challenges, first due to disruptions in Russian oil supplies and more recently amid the ongoing Iran conflict. These developments have reinforced the urgency of strengthening domestic energy capabilities.
Bernstein highlighted that while India remains resource-poor in oil and gas, it is well-positioned in coal and solar, making electrification a key long-term solution. The brokerage believes that policy focus will increasingly shift towards accelerating thermal and nuclear capacity, alongside strengthening renewable energy, storage infrastructure and grid networks.
According to the report, the most attractive opportunities lie in thermal, nuclear, storage and grid-linked segments, rather than purely renewable-focused plays. It also prefers diversified energy companies with strong balance sheets, better access to capital and presence across the value chain.
The brokerage’s initiation comes at a time when the power sector is gaining traction amid rising demand, policy push and evolving global energy dynamics.