JM Financial Issues Stock Ratings and Price Targets for Power Sector Firms JM Financial has issued updated stock ratings and price targets for several power generation and transmission companies, citing expectations of increased electricity demand driven by weather patterns and market dynamics. The brokerage highlighted the potential impact of El Niño and a pre-monsoon heatwave, which are expected to kick in by mid-May, leading to a surge in consumption. This forecast is supported by recent data showing the country’s highest-ever March peak demand, reaching 238 gigawatts during solar hours and 224.6 gigawatts in the evening on March 10. The analysis also noted a significant weather disturbance, including a rare 1,000km cloud formation, which temporarily reduced peak demand by 40 gigawatts in solar hours and 20 gigawatts in non-solar hours over a 10-day period. This event contributed to unusually low clearing prices on the IEX Real-Time Market, with prices dropping as low as Rs 0.0002 per unit on March 22—the lowest recorded since the market’s inception in June 2000. JM Financial anticipates a shortfall in hydroelectric generation, which could negatively affect companies like NHPC Ltd and SJVN Ltd, while coal-fired generation is expected to rise, benefiting firms such as NTPC Ltd, Adani Power Ltd, and Adani Green Energy Ltd. The brokerage also mentioned the extension of Section-11 for Tata Mundra and high merchant prices for Adani Green and Adani Power, though it warned of potential downside risks from prolonged conflicts in West Asia. Among the power sector firms, JM Financial has assigned a 'Buy' rating to NTPC Ltd with a target price of Rs 420, Power Grid Corporation of India Ltd at Rs 314, and Tata Power Company Ltd at Rs 429.#jm_financial #ntpc_ltd #adani_green_energy_ltd #adani_power_ltd #power_grid_corporation_of_india_ltd
