Renowned market expert Siddharth Sedani has shared his latest investment advice on Zee Business, recommending 4 power stocks to consider this week. His insights are aimed at helping investors capitalize on growth opportunities in the energy sector, making these stocks a promising addition to any portfolio.
The Indian stock market had a sluggish start on Wednesday, September 11, following weak global cues. Despite a brief recovery later in the day, the market took a sharp downturn again by the afternoon, closing with significant losses.
BSE Sensex index ends at 81,523.16 levels on Wednesday, Sept 11, down 398.13 points or 0.49% and NSE Nifty 50 settled at 24,918.45, down 122.65 points or 0.49%.
In the face of ongoing market volatility, stocks with strong fundamentals can still deliver solid long-term returns. Market expert Siddharth Sedani, speaking on Zee Business, has introduced a new theme on 4 Power Stocks this week, highlighting several promising stocks that are poised to perform well over time.
Siddharth Sedani Unveils ‘Power Charge’ Theme with Top 4 Stock Picks
Market expert Siddharth Sedani has introduced a new investment theme titled ‘Power Charge,’ featuring four high-quality stocks: NHPC, NLC India, NTPC, and Sterling & Wilson Solar (SW Solar). Sedani recommends investing in these 4 power stocks over the next six months, offering strong growth potential. He has also provided specific guidance on how to allocate investments across each stock for optimal returns.
Why Choose Power Stocks?
The power sector plays a crucial role in driving industrial growth, with India standing as the third-largest producer and consumer of electricity globally. The country boasts a total installed capacity of 440 GW, comprising approximately 49% thermal power, 12% hydro power, 19% solar power, and the remainder from other renewable sources. This diverse energy mix underscores India’s commitment to supporting its industrial and economic development.
According to Siddharth Sedani, both generational and transformational power sectors are expected to grow by 2.2 times in the near future. The Indian government has ambitious plans to install 500 GW of renewable energy capacity by 2030, aiming to support a projected annual power consumption growth of 7-8%. The recent budget allocated Rs 19,500 crore to the power sector, with expectations for further allocations in the upcoming budget to bolster this growth.
Which Power Stocks Are Worth Investing In?
Market expert Siddharth Sedani has suggested investing in 4 power stocks through a Systematic Investment Plan (SIP). This approach allows investors to steadily build their portfolio in the power sector, leveraging the potential growth of these carefully selected stocks.
Below are the 4 Power Stocks suggested by Siddharth Sedani on Zee Business Plateform :-
- NHPC Limited
- NLC India
- NTPC
- SW Solar
NHPC Limited
NHPC Limited stands as India’s largest hydropower development organization, equipped to handle every phase of hydropower projects, from initial concept to final commissioning. In addition to its core expertise in hydropower, NHPC has diversified its portfolio by venturing into solar and wind power development, reflecting its commitment to broadening its energy solutions.
In line with the Government of Maharashtra’s policy, NHPC signed a Memorandum of Understanding (MoU) with the Water Resources Department of Maharashtra on September 3, 2024, in Mumbai. This agreement focuses on the development of Pumped Storage Projects (PSP) within the state, marking a significant step in enhancing Maharashtra’s energy infrastructure.
SIP in NHPC – Target ₹125, Allocation 25%
Investing in NHPC through a Systematic Investment Plan (SIP) with a target of ₹125 per share is a prudent long-term strategy. NHPC, a public sector company, specializes in hydropower generation, and has shown consistent growth potential.
Key Points:
- Target Price: ₹125 per share.
- Investment Strategy: Allocate 25% of your total portfolio to NHPC via SIP. This diversification ensures balanced risk while tapping into the hydropower sector.
- Rationale: NHPC’s government backing, expansion projects, and focus on renewable energy make it a strong player for stable, long-term returns.
Investing 25% in NHPC allows for steady exposure to a reliable utility sector, aligning with broader portfolio growth and sustainability goals.
NLC India
For more than six decades, NLC India Limited (NLCIL) has stood as a pioneer among Public Sector Enterprises in India’s energy sector. Known for its leadership in lignite production, NLCIL has also made significant contributions to thermal and renewable energy generation, positioning itself as a key player in the nation’s energy landscape.
Incorporated on November 14, 1956, NLCIL is a Navratna company under the administrative control of the Ministry of Coal, Government of India. Over the years, it has expanded its operations across the country, with a strong presence in states such as Tamil Nadu, Rajasthan, Uttar Pradesh, Odisha, Jharkhand, Gujarat, and even the Andaman & Nicobar Islands.
SIP in NLC India – Target ₹325, Allocation 25%
Investing in NLC India through a Systematic Investment Plan (SIP) with a target of ₹325 per share offers a strong growth opportunity in the energy sector. NLC India is a leading Public Sector Enterprise known for its significant contributions to lignite production, thermal, and renewable energy.
Key Points:
- Target Price: ₹325 per share.
- Investment Strategy: Allocate 25% of your portfolio to NLC India via SIP, balancing risk and exposure in the energy sector.
- Rationale: With its stable government backing and diversified operations across thermal and renewable energy, NLC India offers potential for long-term gains.
A 25% allocation to NLC India adds stability and growth potential, making it a solid choice for investors aiming to benefit from the energy sector.
NTPC Limited
NTPC, India’s largest power utility, boasts a total installed capacity of 76,294 MW, including its joint ventures. Since its establishment in 1975, NTPC has been at the forefront of powering the nation and is now aiming to become India’s largest integrated power company.
With ambitious plans for growth, NTPC is targeting an impressive 130 GW of installed capacity by 2032, solidifying its position as a leader in the energy sector and continuing to play a pivotal role in India’s power generation and development.
SIP in NTPC – Target ₹424, Allocation 25%
https://ntpc.co.in/Investing in NTPC through a Systematic Investment Plan (SIP) with a target of ₹424 per share offers a solid opportunity in India’s power sector. As the largest power utility in the country, NTPC is well-positioned for long-term growth.
Key Points:
- Target Price: ₹424 per share.
- Investment Strategy: Allocate 25% of your portfolio to NTPC via SIP for balanced and steady growth in the energy sector.
- Rationale: NTPC’s vast capacity, leadership in power generation, and future expansion plans ensure long-term stability and returns.
A 25% allocation to NTPC allows investors to benefit from its strong foundation and growth potential in the evolving energy landscape.
SW Solar (Sterling and Wilson Renewable Energy Ltd)
The Solar EPC Division of Sterling and Wilson Private Limited, now known as Sterling and Wilson Renewable Energy Limited, began its journey in 2011. Originally launched to capitalize on the growing renewable energy market, it quickly established itself as one of the leading solar EPC (Engineering, Procurement, and Construction) solutions providers worldwide.
Following its demerger in 2017, the company has broadened its renewable energy portfolio beyond solar. Today, Sterling and Wilson Renewable Energy offers comprehensive EPC solutions for hybrid energy and energy storage systems, reinforcing its position as a global leader in the renewable energy industry.
SIP in SWSOLAR – Target ₹870, Allocation 25%
Investing in Sterling and Wilson Solar (SWSOLAR) through a Systematic Investment Plan (SIP) with a target of ₹870 per share presents a solid opportunity in the renewable energy sector. As a global leader in solar EPC solutions, SWSOLAR is well-positioned for future growth.
Key Points:
- Target Price: ₹870 per share.
- Investment Strategy: Allocate 25% of your portfolio to SWSOLAR via SIP, gaining exposure to the expanding solar and renewable energy market.
- Rationale: With its global presence and growing capabilities in hybrid energy and energy storage solutions, SWSOLAR offers strong potential for long-term returns.
A 25% allocation in SWSOLAR taps into the rising demand for renewable energy, positioning investors for growth in a sustainable future.