HSBC has shared its ratings and target prices for key players in the power sector, maintaining a cautious view on their future prospects:
- BHEL (Bharat Heavy Electricals Limited): HSBC issued a reduce call with a target price of ₹72 per share. This reflects a cautious stance on BHEL, believing that the current price of ₹278.70 (as of September 4, 2024) is overvalued, with little upside expected.
- Tata Power: The brokerage has also issued a reduce call, setting a target price of ₹300 per share. HSBC expects limited growth in Tata Power’s stock and advises trimming positions or avoiding the stock for now.
- Power Grid: A reduce call was also placed on Power Grid, with a target price of ₹270 per share. HSBC is cautious about the company’s growth and believes its stock is trading above its intrinsic value.
- NTPC: HSBC maintains a hold call on NTPC, with a target price of ₹355 per share. This suggests that NTPC’s stock is fairly valued, and no major price movements are expected in the near term.
HSBC’s overall outlook for the power sector remains conservative, citing evolving tenders for peak demand management and increased adoption of renewable energy-based battery energy storage systems (BESS) as significant factors influencing the sector’s future.
Disclaimer: The information provided is for informational purposes only and does not constitute financial or investment advice.