The Indian power sector is a massive industry and will likely bring more growth opportunities in the next few years.
The Economic Survey 2016-17 estimates total investments in the power sector to be Rs. 6.9 – 7.7 lakh crore over the period 2016-22. The Power sector has attracted substantial FDI flows in recent times.
In this blog, we look at the top power sector stocks in India that are likely to bring in some returns for the investor. It will be interesting to see how corporate India will play the power sector in the coming years.
Best Power Sector Stocks to Buy in India
The power sector is a critical part of the economy as India is one of the world’s leading producers and consumers of electricity. The industry is also a key driver of employment and investment, with the government aiming to provide universal access to electricity by 2022.
There are several power sector stocks in India to choose from, and here we look at some of the top power companies in India.
Adani Transmission Ltd
Adani Transmission Ltd is one of the leading top power companies in India. The company has a solid presence in the transmission and distribution segment of the power sector.
The company’s strong execution track record has executed some of India’s largest transmission projects. The company is also expanding its presence in the renewable energy space and aims to install 5 GW of renewable energy capacity by 2025.
Interested to Invest in Adani Transmission Ltd? Check out Share Price of Adani Transmission Ltd on SMC
Founded in 1975, NTPC Ltd is one of the major players in India as the best power sector. The company is well-known in the power generation and distribution business and consistently delivers strong financial results.
The company’s share price has also been on a steady uptrend, making it one of the best-performing stocks in the Indian stock market. NTPC Ltd is thus a great investment option for investors seeking exposure to the Indian power sector.
Interested to Invest in NTPC Limited? Check out Share Price of NTPC Limited on SMC
Tata Power, founded in 1911, is the third-largest participant in India. The company has a strong presence in generating, transmitting and distributing electricity.
Tata Power is concentrating more on EV charging stations, keeping with the Tata Group’s plan to build an electric car trend in India. Tata Power will focus on the cost-effectiveness of charging stations, while Tata Motors will concentrate on electric vehicles.
The company has a strong track record of delivering quality power to its customers. The company has a good mix of thermal, hydro and renewable energy sources. It also has a strong focus on safety, the environment and sustainability. Tata Power has been consistently ranked as one of the best power sector companies in India.
Interested to Invest in Tata Power? Check out Share Price of Tata Power on SMC
Adani Green Energy Ltd.
Adani Green Energy Ltd is another best among the power companies in India. The company has been working hard to increase its renewable energy portfolio and has been successful in doing so.
The company’s strong presence in the Indian market is expected to grow rapidly in the coming years. The company’s stock is a good investment for the long term.
Interested to Invest in Adani Green Energy Ltd? Check out Share Price of Adani Green Energy Ltd on SMC
More than 70% of the total share capital of NHPC, an Indian Mini Ratna business, is controlled by the government. It is considered a public-sector utility company.
The company is well-positioned to profit from India’s rising need for power and has a proven track record of generating shareholder value. NHPC Ltd. has a diversified portfolio of power plants, including hydro, thermal and renewable energy projects, and is one of the largest developers of hydropower projects in India.
NHPC Ltd. is also one of the few power companies in India with a AAA credit rating. This makes NHPC Ltd. a safe and attractive investment for long-term investors.
Interested to Invest in Adani Green Energy Ltd? Check out NHPC Limited Share Price on SMC
Why Should You Invest in Power Sector Stocks?
The sector presents several advantages for investors.
- First, the sector is growing at a very rapid pace. The installed capacity of the power sector in India has more than doubled in the last decade. The industry is expected to grow similarly in the coming years. This provides an excellent opportunity for investors to participate in the sector’s growth.
- Second, the sector is highly regulated. The government has a clear and transparent policy framework for the industry. This provides a high degree of certainty for investors.
- Third, the sector offers several attractive investment opportunities. Several companies in the industry are listed on the stock exchange. These companies provide a variety of investment opportunities for investors.
- Fourth, the sector is well developed. The infrastructure for the industry is well advanced, and many players are in the sector. This provides a high degree of safety for investors.
The power sector in India is one of the most attractive sectors for investment. As we stated earlier, this sector is growing rapidly, is highly regulated, offers several attractive investment opportunities, and is well developed.
Are you ready to enter the electrifying trading world?
Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; before investing, thoroughly read all relevant documents or consult an expert