NTPC and Power Grid Corporation have been upgraded by JPMorgan, citing India’s rising power demand and increased investment in the energy sector. The global brokerage firm assigned an ‘overweight’ rating to both state-run companies, highlighting their strong position in the market and the potential for growth amid the country’s expanding electricity needs.India has been witnessing a steady increase in power consumption, driven by industrial expansion, infrastructure development, and rising household usage. The surge in demand has widened the gap between electricity supply and consumption, creating opportunities for companies like NTPC, the largest power generator, and Power Grid, a key player in electricity transmission.
According to industry estimates, power demand in March saw a 7% rise, with peak consumption reaching 235 gigawatts (GW). This upward trend has reinforced the need for capacity expansion and transmission infrastructure improvements, making these companies attractive investment options.JPMorgan’s analysis also acknowledges the challenges faced by the power sector, including regulatory hurdles, the financial health of distribution companies, and delays in power purchase agreements. Despite these concerns, the brokerage firm believes NTPC and Power Grid are well-positioned to capitalise on upcoming opportunities. The recent correction in stock prices has made their valuations more reasonable, making them viable investment choices for long-term growth.While NTPC and Power Grid received positive ratings, JPMorgan maintained a ‘neutral’ stance on Tata Power and Torrent Power, citing concerns over execution risks. Additionally, the brokerage assigned an ‘underweight’ rating to JSW Energy due to concerns about overvaluation and potential risks in the private utility segment. These ratings indicate a cautious approach towards the broader power sector while favouring companies with stable fundamentals and strong government backing.The push towards infrastructure investment and increasing thermal capacity is expected to drive growth in the sector. NTPC stands to benefit from its capacity expansion plans, while Power Grid is likely to see gains through transmission network enhancements. Analysts believe that as India moves towards a more robust and sustainable energy framework, these companies will play a critical role in meeting the country’s long-term power requirements.
Following the report, NTPC shares saw a modest rise, gaining 0.56% to reach Rs 369 per share in intraday trading. The stock has already surged by 10% in 2025 and is trading 25% higher than its February lows. Power Grid shares also experienced a 1.98% gain, climbing to Rs 296.75, despite a 5% decline earlier this year. However, the stock has seen an 8% recovery from its February lows, indicating renewed investor confidence.
As India continues its journey towards strengthening its energy infrastructure, the government’s focus on increasing power generation and transmission efficiency is expected to drive long-term growth. With a growing economy and rising electricity needs, NTPC and Power Grid are well-positioned to remain key players in India’s evolving power landscape.
