Best Power Stocks: The heat outbreak in India is increasing rapidly. With this, the demand for electricity is increasing. In such a situation, if you invest in the stock market, then we are going to tell you about the stock of 5 such power companies today, which can give you good profit in the year 2025. In fact, in 2024, there was a huge jump in the shares of India’s power companies and experts believe that this trend is going to continue in the year 2025 as well.
Why is the demand for electricity increasing?
Actually, due to heat outbreak, the demand for AC and cooling devices is increasing rapidly. Apart from this, infrastructure growth means urbanization and electric vehicles are also expanding. At the same time, factories and businesses are also consuming more electricity. Due to this, it is estimated that in 2025 India’s electricity demand may increase at the rate of 9 to 10 percent.
These 5 power stocks are cheap and strong
According to the report of Financial Express, these five stocks have been selected on the basis of EV/Ebitda (Enterprise Value/Ebitada). This is the best way to value power companies. Low EV/ebitda means shares can be underwelled.
Jayaprakash Power Ventures (EV/Ebitda: 4.6X)
The company works as coal mining, thermal and hydro power generation. This company is cheaper than Peer companies (Median EV/Ebitda 11.65X). Talking about future plans, the company is focusing on increasing coal mining capacity and expansion in hydro power.
BF Utilities (EV/Ebitda: 5.9X)
BF Utilities Wind works as an energy generation. The company holds a strong grip in the renewable sector and is working on ESG Gols. Talking about performance, its stocks have seen a rise of 0.7 percent in the last one year.
Gujarat Industries Power (EV/Ebitda: 6.1X)
The company works as a thermal, wind and solar power generation. Gujarat Industries Power is currently being built for the Government of Gujarat, PSU, 2,375 MW Renewable Energy Park. Talking about the challenge, this stock fell 22.4 percent last year.
CESC (EV/Ebitda: 7.7X)
This company works as electricity production and distribution. Mirae Asset has given it a ‘BUY’ rating and has kept the target of Rs 195 per share. Talking about future plans, this company is setting up 10,500 TPA green hydrogen plant.
Ratanindia Power (EV/Ebitda: 9.1x)
The RatanIndia Power Company has a capacity of thermal power generation (2,700 MW. The company is good because, last year its shares saw a rise of 22.7 percent. At the same time, its coal allocation has also improved.
Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)
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