Motilal Oswal has initiated coverage on several key players in the utilities sector, placing ‘Buy’ ratings on Power Grid, JSW Energy, and Tata Power, while issuing a ‘Neutral’ rating for NTPC and Indian Energy Exchange (IEX). The brokerage sees a multi-decade investment opportunity of over Rs 40 trillion in the sector, driven by accelerating power demand growth, which is now projected to grow at 7% CAGR, up from 5% previously.
Motilal Oswal has set target prices (TP) as follows:
- Power Grid: Rs 425
- JSW Energy: Rs 917
- Tata Power: Rs 530
- NTPC: Rs 450
- IEX: Rs 226
The colossal investment prospects and rising demand make the power sector an attractive space, with Motilal Oswal highlighting the strong growth potential for the companies rated ‘Buy’. However, the neutral stance on NTPC and IEX reflects more balanced expectations for these stocks.
