Tata Power, IEX, SJVN, CESC, Power Grid, NHPC: Target prices for 9 power stocks

Antique Stock Broking in its fresh report on power sector suggested up to 34 per cent upsides on nine power stocks, saying Power Grid and CESC are its preferred stock picks. .The sector valuations have corrected sharply, with the average price to book value now at 2-2.2 times, 35-40 per cent below its recent high, the domestic brokerage said. 

Power Grid remains its top large-cap pick, underpinned by rising capex and higher capitalization. In the small and midcap space, CESC is Antique’s preferred idea, with the Chandrapur PPA and renewables portfolio expected to drive double-digit PAT growth. 

While JSW Energy offers the strongest EPS growth in the sector, Antique said it would prefer to await a more attractive entry point before turning more positive.

In August, India’s power generation rose 4 per cent YoY, marking a recovery after a flattish April-July 2025 period, during which some months even recorded a decline. Looking ahead, from last year’s low base and seasonal dry weather could support stronger demand growth in September 2025 and 3QFY26, Antique said.

Coal inventories at power plants remained comfortable at 54 mt in July, which has moderated offtake for Coal India (volumes down 6 per cent YoY). Meanwhile, short-term market prices remain soft, with DAM tariff down 4 per cent YoY in August. 

“While the sector’s stock performance has been muted amid weak demand, normalization of consumption could drive re-rating. Valuations have corrected sharply, with the sector average P/BV now at 2.0-2.2x i.e. 35-40% below its recent high. We see Power Grid and CESC as key beneficiaries with potential catalysts ahead,” Antique said.

The brokerage noted that India’s installed power capacity stood at 490 GW as of July, with 42 GW added over the past year. Renewables contributed 90 per cent of the incremental capacity, highlighting the sustained momentum in clean energy deployment. Consequently, the share of renewables in the total mix has risen to 38 per cent. 

“In July’25 alone, 6 GW of new capacity was commissioned, entirely from renewable sources, underscoring the strong policy thrust and rising investor appetite for the sector. This reinforces the structural transition in India’s energy landscape, with renewables emerging as
the core growth driver and a key tailwind for players across the clean energy value chain,” Antique said.