India's power sector is in the middle of a structural shift, moving away from a model built purely on adding volume and capacity toward one focused on assured, reliable supply. With power demand expected to climb sharply in the years ahead, stocks like NTPC, CESC, Tata Power, NHPC and JSW Energy are seen carrying strong growth potential, according to an HDFC Institutional Equities report.
Peak power demand in the country crossed 270 GW in May 2026, sharpening the need for assured or "firm" power delivery. Several power stocks still trade at attractive valuations, thanks to their ability to ride India's robust demand growth.
NTPC Among the Top Picks
NTPC stands out as one of the most preferred names in the space, helped by its push into renewable energy and clear financial visibility. On the back of attractive valuations, the stock has been handed a target price of Rs 400 per share. At 2:17 pm, NTPC was trading 1.3% lower at Rs 359.95 on the BSE, with a market capitalisation of Rs 3,49,031.5 crore.
Targets for CESC and Tata Power
CESC has been given a base-case target of Rs 210 and a bull-case target of Rs 221 per share. The stock was trading 0.73% lower at Rs 169.95 on the BSE, with a market cap of Rs 22,528.07 crore.
Tata Power earned a 'Buy' rating, with a base target of Rs 430 and a bull target of Rs 460 per share. At 2:30 pm, the stock was down 0.69% at Rs 395.55, carrying a market cap of Rs 1,26,391.66 crore.
Power Grid Also Rated 'Buy'
HDFC Institutional Equities assigned a 'Buy' rating with a target of Rs 430 per share and a bull target of Rs 460. Power Grid was trading 0.10% lower at Rs 291.95 on the BSE, with a market cap of Rs 2,71,531.13 crore.
JSW Energy and NHPC
JSW Energy too received a 'Buy' rating, with a bull-case target price of Rs 639 per share. At 2:34 pm, the stock was 0.99% lower at Rs 579.3, with a market cap of Rs 1,05,150.23 crore.
NHPC has been given a bull-case target of Rs 85 per share. Unlike the rest, this stock was trading 2.65% higher at Rs 79.89 on the BSE.
