The shares of these power companies will make portfolio 'power house'!
The heat wave is increasing rapidly in India. Along with this, the demand for electricity is also increasing. In such a situation, if you invest in the stock market, then today we are going to tell you about the stocks of 5 such power companies, which can give you good profit in the year 2025. Actually, in 2024, there was a huge jump in the shares of India's power companies and experts believe that this trend is going to continue in the year 2025 as well.
Why is the demand for electricity increasing?
Actually, due to the heat wave, the demand for AC and cooling devices is increasing rapidly. Apart from this, infrastructure growth i.e. urbanization and electric vehicles are also expanding. At the same time, factories and businesses are also consuming more electricity. Due to this, it is estimated that India's electricity demand may increase at the rate of 9 to 10 percent in 2025.
These power stocks are cheap and strong
According to the report of Financial Express, these five stocks have been selected on the basis of EV/EBITDA (Enterprise Value/EBITDA). This is the best way to value power companies. Low EV/EBITDA means the stock may be undervalued.
Jaiprakash Power Ventures (EV/EBITDA: 4.6x)
The company does coal mining, thermal and hydro power generation. This company is cheaper than peer companies (median EV/EBITDA 11.65x). Talking about future plans, the company is focusing on increasing coal mining capacity and expansion in hydro power.
BF Utilities (EV/EBITDA: 5.9x)
BF Utilities does wind energy generation. The company has a strong hold in the renewable sector and is working on ESG goals. Talking about performance, its shares have seen a rise of 0.7 percent in the last one year.
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