Last Updated on Aug 21, 2023 by Harshit Singh
The government’s initiative to increase the electricity generation capacity has seen many power companies in India receiving a considerable investment boost to fulfil the country’s growing power needs. As a result, a sharp upside in the stocks of these power companies in India has been recorded, demonstrating substantial buying of the stocks in the last few weeks. Rallying alongside the market, using Tickertape Stock Screener, we have identified the best power companies in India based on specific parameters.
Did you know: India is the third-largest producer and consumer of electricity in the world.
Table of Contents
Best Power Companies in India
| Stock name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1M Return (%) | 5Y CAGR (%) | 5Y Avg Net Profit Margin (%) | ROCE (%) |
| JSW Energy Ltd | 59,444.83 | 362.35 | 40.23 | 25.08 | 39.97 | 12.70 | 7.07 |
| Adani Power Ltd | 1,17,482.36 | 304.60 | 10.95 | 23.54 | 57.68 | 6.61 | 16.17 |
| NTPC Ltd | 2,08,623.77 | 215.15 | 12.34 | 14.84 | 10.32 | 11.42 | 9.81 |
| Gujarat Industries Power Company Ltd | 1,737.88 | 114.90 | 9.21 | 5.51 | 4.98 | 14.00 | 7.17 |
Note: To churn out a list of the best power companies in India, we have used the following parameters on Tickertape to filter the stocks, among many others. You can use the Tickertape Stock Screener to filter stocks based on different parameters.
- Sector – Utilities > Power Generation
- 5Y Avg Net Profit Margin – 0 to high
- 5Y CAGR – 0 to high
- Return on Capital Employed (ROCE) – Set from mid to high
- 1M Return – Sorted from highest to lowest
The information shown here is of date 21st August 2023.
About best power companies in India
JSW Energy Ltd
JSW Energy Limited is a mid-cap integrated power company primarily engaged in generation and sale of power. To understand the reason behind the company’s performance in the past weeks, here’s an insight –
- In the last 5 yrs, the company’s revenue has grown at a yearly rate of 10.57%, vs the industry average of 6.08%.
- The company’s net income has has grown to 80.11% against the industry average of 26.12%.
- On the Tickertape Scorecard, the stock ranks higher in profitability, 7.7 out of 10, showing good signs of profitability and efficiency.
- Recently, the company announced the final cash dividend of Rs. 2 on 3rd June 2023.
- Moreover, GQG Partners bought 0.6% stake in JSW Energy Ltd for Rs. 351 cr. on 16th August, 2023.
Click here to gain extensive insights on the company’s financials, holdings, recent events, etc.
Adani Power Ltd
Adani Power Limited provides electric power generation by coal-based thermal power plants and coal trading. The company has showcased signs of recovery in recent months as the stock grew by 25.40% in one month. To understand the reason behind the company’s performance in the past weeks, here’s an insight –
- In the last 5 yrs, the company’s revenue has grown at a yearly rate of 15.33%, vs the industry average of 12.11%.
- The company’s market share has increased from 14.18% to 15.87% during the previous 5 yrs.
- On the Tickertape Scorecard, the stock ranks higher in profitability, 8.5 out of 10, showing good signs of profitability and efficiency.
- In the last 3 months, significant selling via bulk deal is observed.
- On the downside, the stock has a moderate number of red flags.
Click here to gain extensive insights on the company’s financials, holdings, recent events, etc.
NTPC Ltd
NTPC Limited is a large-cap power generation company engaged in generation and sale of bulk power to state power utilities. To understand the reason behind the company’s performance in the past weeks, here’s an insight –
- In the last 5 yrs, the company’s revenue has grown at a yearly rate of 13.79%, vs the industry average of 12.11%.
- The company’s market share has increased from 63.03% to 65.96% during the previous 5 yrs.
- On the Tickertape Scorecard, the stock ranks higher in profitability, 7.7 out of 10, showing good signs of profitability and efficiency.
- Recently, the company announced the final cash dividend of Rs. 3 on 11th August 2023.
Click here to gain extensive insights on the company’s financials, holdings, recent events, etc.
Conclusion
Complemented by the rally and the recent injection of investment have attracted the attention of investors toward power sector stocks, with many stocks having generated double-digit returns in the last month. However, as we always say, to find the best power stock in India, conduct your research using Tickertape’s Stock Screener. With over 200 filters, you can screen a stock in depth to find the best stock to maximise your ROI.
As an investment fanatic, I’ve dabbled in early-stage startups, mutual funds, gold, stocks, smallcases, and real estate to identify which assets generate the highest ROI. At Tickertape, I’m dedicated to presenting my learning and providing insightful suggestions to help my readers make sound investment decision.
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