A Colossal Multi-Decade Investment Opportunity Beckons In Indian Power Sector: Motilal Oswal's Thematic View

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We Initiate Coverage with Buy on Power Grid, JSW Energy, Tata Power; Neutral on NTPC, IEX: Given this colossal multi-decade investment opportunity, we initiate on Power Grid (target price: Rs 425), JSW Energy (target price: Rs 917) and Tata Power (target price: Rs 530) with a Buy rating and NTPC (target price: Rs 450) and IEX (target price: Rs 226) with a Neutral rating.Key risks: delays in start-up of new projects; transmission connectivity in some states (e.g. Rajasthan) already clouding RE pipeline outlook,lower-than-expected profitability in RE projects,rising competitive intensity in transmission (TBCB)/plain vanilla solar/wind generation projects,price volatility in key commodities and components, insufficient domestic solar module capacity,risk of market coupling for dominant power exchanges..Investment opportunity of Rs 40 trillion and more: We estimate an investment opportunity of Rs 40 trillion (Rs 34 trillion in firm capex + Rs 8 trillion in optionality) in the Indian power sector over the next decade, with generation, transmission and smart metering accounting for 86%/10%/4% of this spending. The triple tailwinds driving this mammoth investment are:power demand accelerating at a higher 7% CAGR (5% previously), the need to upgrade/replace old power infrastructure as electricity mix undergoes a shift (more RE all-day),the transition to cleaner sources of energy given India’s target of 500GW in RE capacity by 2030..Click on the attachment to read the full report:.Max Healthcare - On An Expansion Spree: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

A Colossal Multi-Decade Investment Opportunity Beckons In Indian Power Sector: Motilal Oswal's Thematic View

The brokerage initiates coverage with Buy on Power Grid, JSW Energy, Tata Power; and Neutral on NTPC, IEX.

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A Colossal Multi-Decade Investment Opportunity Beckons In Indian Power Sector: Motilal Oswal's Thematic View

The brokerage initiates coverage with Buy on Power Grid, JSW Energy, Tata Power; and Neutral on NTPC, IEX.

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