5 hrs ago
Nuvama Names ACME Solar, NTPC, Power Grid Picks
Nuvama studied the electricity market and selected three power companies to watch.
It likes ACME Solar and NTPC and gave both a “Buy” rating.
It gave Power Grid a “Hold” rating, meaning investors may want to wait.
Nuvama set future price targets for all three companies.
During sunny hours, there was more electricity available than people wanted to buy.
Electricity prices stayed low during those hours.
During hours without solar power, the amount of electricity supplied fell.
IEX’s electricity trading volumes increased in Aug-26, mainly because TAM volumes grew strongly.
Nuvama identified ACME Solar, NTPC and Power Grid as its preferred power-sector stocks.
The brokerage rated ACME Solar and NTPC “Buy,” with target prices of Rs 448 and Rs 445.
Power Grid received a “Hold” rating and a 12-month target price of Rs 283.
Solar-hour electricity supply exceeded demand while prices remained low; non-solar-hour supply declined.
IEX electricity volumes rose 20.25% year over year in Aug-26, driven mainly by a roughly 111% increase in TAM volumes.
- Who
- Nuvama, ACME Solar Holdings Ltd, NTPC Ltd and Power Grid Corporation of India Ltd.
- What
- Nuvama issued power-sector stock recommendations and target prices while discussing electricity supply, prices and trading volumes.
- Where
- The electricity market and power-sector companies discussed in the report.
- When
- The recommendations cover 12 months; the cited market performance was on Thursday, and the volume data refers to Aug-26.
- Why
- Nuvama said solar-hour supply exceeded demand at low prices, while non-solar-hour supply declined, alongside higher IEX volumes.
Key facts
- Nuvama rating
- Buy for ACME Solar and NTPC; Hold for Power Grid.
- ACME Solar target
- Rs 448 over 12 months.
- NTPC target
- Rs 445 over 12 months.
- Power Grid target
- Rs 283 over 12 months.
- Power Grid closing price
- Rs 272, after rising 2.27% on Thursday.
- NTPC closing price
- Rs 337, after rising 1.13% on Thursday.
- ACME Solar closing price
- Rs 396.95, after falling 1.33% on Thursday.
- IEX volume growth
- Aug-26 electricity volumes increased 20.25% year over year; TAM volumes rose approximately 111%.
Quotes
Nuvama
Brokerage providing the power-sector assessment and stock recommendations
“Solar hour supply continued to outpace demand even as prices remained low, whereas non-solar hours witnessed a dip in supply. IEX's Aug-26 electricity volumes rose 20.25 per cent YoY mainly due to TAM volumes, which grew ~111 per cent YoY”
businesstoday.in
Sources
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