The article, published in The Economic Times, suggests that Indian utilities are back in focus as power demand soars, with Motilal Oswal’s research report highlighting the sector as a key pick. The article cites the current power crisis in the country, with peak power demand reaching record levels, and the urgent need for new capacity addition to meet the growing demand.
The article notes that the power sector is a key beneficiary of the Reserve Bank of India’s (RBI) measures to boost economic growth, with the recent monetary policy decision to ease lending rates fueling inflation concerns. This has led to a surge in power demand, with peak power demand reaching record levels and the government struggling to meet the growing demand.
Motilal Oswal’s report highlights JSW Energy as a top pick in the sector, citing the company’s strong operational performance, robust balance sheet, and attractive valuations. The report notes that JSW Energy has been consistently delivering strong operating performance, with its PAT (profit after tax) growing at a CAGR of 24% over the past three years.
The article also highlights other positive trends in the sector, including the increasing adoption of renewable energy sources, the government’s initiatives to promote discom (distribution companies) reforms, and the growing focus on smart grids and smart metering. The article notes that these trends are expected to drive growth in the sector and create new opportunities for investors.
The article concludes that Indian utilities are back in focus, driven by the power crisis and the need for new capacity addition. It suggests that investors should consider the sector, with JSW Energy being a top pick, driven by its strong operational performance and attractive valuations.