Tata Power, NTPC, Power Grid Down 5% in One Month, A Smart Buy-the-Dip Moment? Here's What Brokerage Says

Power Sector Stock: Shares of Tata Power, NTPC, and Power Grid have underperformed over the past month. In broader terms, Nifty Energy has shown a lacklustre performance with a nominal surge of 0.97% in one month. While India's energy demand may moderate during the monsoon season, strong capital expenditure by the industry players will boost the power sector in the long term, according to ICICI Direct.

The brokerage has weighed on three power sector stocks, ie Tata Power, National Thermal Power Corporation (NTPC), and Power Grid for the long term. Here's what the brokerage has to say about these power sector stocks and the industry's growth outlook.

Power Sector Growth Outlook

India's power sector is likely to grow at a fast pace in the coming years. The government's focus on infrastructure development is likely to boost the sector's growth in the long term. Additionally, "enhanced RoW compensation" may fast-track transmission projects, noted ICICI Direct.

The brokerage also highlighted the development of nine 1100 kV UHV lines with ₹53,000 crore investment by 2034, Rs 5400 crore viability gap funding for 30 GWh storage, and discom privatisation and carbon market rollout by 2026.

THe few achievements of the power sectors will be a record 34 GW capacity addition in FY25, significant increase in renewable energy share to 48% in FY25 against 30% in FY14 abd installation of smart metres.

Tata Power Share Price Target

Mentioning the Tata group stock in its list, ICICI direct fixed a target price of Rs 530 a piece. Tata Power stock was trading nominally lower at Rs 396.7 per share on BSE at 1:25 pm on Tuesday. Its market capitalisation stood at Rs 1,26,759.12 with an ROE of 21.04.

Tata Power stock touched its 52-week high mark of Rs 494.85 per share on BSE on 27 September, 2024. Meanwhile, the company scrip dipped to its 52-week low mark of Rs 326.25 apiece on 17 February, 2025. The stock value has declined around 1% year to date (YTD), but has declined nearly 2.27% in one month.

Power Grid Share Price Target

Power Grid shares were trading 0.14% lower at Rs 288.25 per share on BSE at 2:16 pm. The brokerage has fixed a target price of Rs 350 per share. The stock value has declined around 4% in one month. Whereas its value has surged around 7.8% in three months. Power Grid stock touched its 52-week high mark of Rs 366.2 per share on BSE, whereas the stock dipped to its 52-week lowest mark of Rs 247.5 per share on BSE on 28 February, 2025.

NTPC Share Price Target

NTPC share price target was fixed at Rs 435 per share, according to ICICI Direct. NTPC shares were trading marginally higher on BSE on Tuesday. The stock was up 0.55% and was trading at Rs 335.6 per share on BSE at 2:30 pm with a market capitalisation of Rs 3,25,420.12 crore. The stock touched its 52-week high mark of Rs 448.30 apiece on BSE on 30 September, 2024. Whereas the company scrip dipped to its 52-week low mark of Rs 292.70 apiece on 17 February, 2025.