Tata Power, NTPC Green, Torrent Power, NTPC, Power Grid, JSW Energy, IEX shares: Check ratings, targets

NTPC has a target price of Rs 395, implying an upside of 31 per cent, the highest among Ambit’s stock picks. JSW Energy has a target price of Rs 535, indicating a potential upside of 14 per cent.

Torrent Power has a target price of Rs 1,325, suggesting an upside of 12 per cent, and Power Grid has a target of Rs 285, implying a potential upside of 13 per cent.

Among the stocks carrying a ‘Sell’ rating, Ambit has set a target price of Rs 85 for NTPC Green, indicating an upside of 2 per cent, and Rs 100 for IEX, implying a downside of 3 per cent.

According to Ambit, India’s power sector appears poised for another major investment cycle. The brokerage estimates that electricity demand could grow at a CAGR of around 6 per cent until FY32, potentially requiring generation gross block to expand at around 11 per cent annually.

The brokerage said the next catalyst could come from power contracting rather than near-term demand. Limited visibility on power purchase agreements (PPAs) for capacity in FY29 and FY30 implies that distribution companies (DISCOMs) need to accelerate procurement over the coming year, irrespective of power deficits in FY28.

Ambit also noted that bond yields are approaching multi-decade highs. A peak in yields could mark a bottom for utility valuations following the sharp correction, the brokerage said, adding that it sees value emerging in select counters.

On individual companies, Ambit said JSW Energy offers strong earnings visibility from contracted renewable energy (RE) capacity and thermal expansion. Torrent Power’s thermal power and distribution businesses offer opportunities to offset declining prospects in merchant gas, according to the brokerage.

For Power Grid, Ambit said order book growth expectations appear demanding, but current valuations offer value even without assuming further material acceleration in awards.

Separately, JM Financial said ongoing DISCOM reforms, with parallel licensing taking root, could present the next major opportunity for distribution-focused utilities, including Tata Power, Torrent Power, CESC and Adani Energy Solutions.