As of late 2024, India’s total electricity generation capacity has reached ~452.69 GW, with renewable energy sources contributing a substantial portion of this mix.
The electricity demand is projected to accelerate at a CAGR exceeding 7 percent, driven by factors such as increased electrification, the rise of electric vehicles (EVs), and the expansion of data centres. Peak demand is expected to reach around 318 GW by 2029, with significant contributions from railway electrification and infrastructure projects.
Following are a few power stocks with a PEG ratio of less than 1 to keep in your watchlist:
1. BF Utilities Limited
With a market cap of Rs. 3,314.7 crores, the stock surged nearly 1 percent on BSE to Rs. 934 on Friday.
BF Utilities has reported a low PEG ratio of 0.86, indicating that the stock may be undervalued. Over the last one year, the stock has delivered positive returns of about 52.3 percent, but nearly 5 percent of negative returns of year-to-date.
In Q2 FY25, the company witnessed a marginal growth in its revenue from operations, reaching Rs. 221 crores, a rise of 1.4 percent YoY, accompanied by a net profit growth of nearly 4.6 percent YoY to Rs. 91 crores, during the same period.
Incorporated in 2000, BF Utilities Limited is engaged in the business of generating electricity through windmills, along with infrastructure activities.
2. Tata Power Company Limited
With a market cap of Rs. 1.13 lakh crores, the shares of India’s largest vertically-integrated power company slumped nearly 3.3 percent on BSE to Rs. 355.1 on Friday.
Tata Power has reported a low PEG ratio of 0.42, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 11.3 percent and a Return on Capital Employed (ROCE) of 11.1 percent.
In Q2 FY25, the company witnessed a marginal growth in its revenue from operations, reaching Rs. 15,698 crores, a rise of 0.3 percent YoY, accompanied by a net profit growth of nearly 7.5 percent YoY to Rs. 1,093 crores, during the same period.
Tata Power Company Limited is primarily engaged in the business of the generation, transmission and distribution of electricity. It also manufactures solar roofs and plans to build 1 lakh EV charging stations by 2025.
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3. TD Power Systems Limited
With a market cap of Rs. 6,393.3 crores, the stock surged 0.7 percent on BSE to Rs. 419.95 on Friday.
TD Power Systems has reported a low PEG ratio of 0.46, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 18.1 percent and a Return on Capital Employed (ROCE) of 25.4 percent.
In Q2 FY25, the company witnessed a significant growth in its revenue from operations, reaching Rs. 306 crores, a rise of 11.7 percent YoY, accompanied by a net profit growth of nearly 24.2 percent YoY to Rs. 41 crores, during the same period.
TD Power Systems Limited is engaged in the business of manufacturing AC Generators and Electric Motors for various applications which are specifically designed and tailor-made to suit the needs of the customers based on their requirements and specifications.
4. Jaiprakash Power Ventures Limited
With a market cap of Rs. 11,102.6 crores, the stock surged 0.5 percent on BSE to Rs. 16.95 on Friday.
Jaiprakash Power has reported a low PEG ratio of 0.18, indicating that the stock may be undervalued. Additionally, the company has a Return on Equity (ROE) of 12.8 percent and a Return on Capital Employed (ROCE) of 14 percent.
In Q2 FY25, the company witnessed a marginal decline in its revenue from operations, reaching Rs. 1,226 crores, a fall of 9.2 percent YoY, while a growth in net profit by nearly 165 percent YoY to Rs. 183 crores, during the same period.
Incorporated in 1994, Jaiprakash Power Ventures Limited is engaged in the business of generation of thermal and hydro power, cement grinding and captive coal mining.
Written by Shivani Singh
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