Suzlon, BHEL, Tata Power, Waaree Energies, JSW Energy, others: Buy, sell or hold? Check share price targets

According to the latest sector update from JM Financial, the country is likely up for a surge in electricity consumption, driven by the arrival of El Niño and a pre-monsoon heatwave expected to kick off by mid-May.

The brokerage noted that on March 10, the country recorded its highest-ever March peak, touching 238GW during solar hours and 224.6GW in the evening.

“A sudden weather disturbance (1,000km rare cloud formation) dampened solar/non-solar hours peak demand by 40/20GW within a period of 10 days,” JM Financial said.

IEX Real-Time Market recorded clearing prices as low as Rs 0.0002 per unit on March 22—the lowest seen since the market’s inception in June 2000, it noted.

JM Financial anticipates a shortfall in hydro generation (negative for NHPC Ltd, SJVN Ltd) and an increase in coal-fired generation (positive for NTPC Ltd, Adani Power Ltd), noting that “extension of Section-11 (Tata Mundra) and high merchant prices (Adani Green, Adani Power), subject to downside risk from any slowdown due to the prolonged West Asia conflict.” 

Target price & ratings

Among the power generation and transmission giants, the brokerage holds a ‘Buy’ rating on NTPC Ltd with a target price of Rs 420, Power Grid Corporation of India Ltd with a target of Rs 314, and Tata Power Company Ltd with a target of Rs 429. JSW Energy Ltd is also rated ‘Buy’ with a target of Rs 614.

The Adani group’s energy pack features, with ‘Buy’ calls on Adani Power Ltd at a target of Rs 177, Adani Green Energy Ltd at a target price of Rs 1,204, and Adani Energy Solutions Ltd at Rs 1,199.

Bharat Heavy Electricals Ltd (BHEL) and Suzlon Energy Ltd both have a ‘Buy’ call with targets of Rs 345 and Rs 64, respectively. ACME Solar Holdings (ACME) and Emmvee Photovoltaic Power (Emmvee) also land ‘Buy’ ratings with target prices set at Rs 289 and Rs  291, while CESC Ltd gets a ‘Buy’ with a target of Rs 196.

JM Financial suggested an ‘Add’ on the Indian Energy Exchange (IEX) with a target of Rs 145, NHPC Ltd, ‘Add’ rating at Rs 84, Inox Wind Ltd also has an ‘Add’ rating with a target of Rs 120, and Vikram Solar Ltd (‘Add’, Rs 202).

Conversely, the brokerage has assigned a ‘Reduce’ rating on Coal India Ltd with a target of Rs 420, Torrent Power Ltd at Rs 1,410, Waaree Energies Ltd (Reduce) target at Rs 2,815, and Premier Energies Ltd at Rs 865. SJVN Ltd has been given a ‘Sell’ rating with a target price of Rs 67.