Top 4 Power Stocks with PEG Ratios Under 1 You Can’t Afford to Miss!
Power Stocks: As of late 2024, India’s total electricity generation capacity has reached approximately 452.69 GW, with renewable energy sources playing a significant role in this mix. The demand for electricity is projected to grow at a Compound Annual Growth Rate (CAGR) exceeding 7 percent, driven by factors such as increased electrification, the rise of electric vehicles (EVs), and the expansion of data centers. Peak demand is expected to reach around 318 GW by 2029, with substantial contributions from railway electrification and infrastructure projects.
Here are a few power stocks with a Price/Earnings to Growth (PEG) ratio of less than 1 to consider adding to your watchlist:
1. BF Utilities Limited
With a market capitalization of Rs. 3,314.7 crores, the stock rose nearly 1 percent on the Bombay Stock Exchange (BSE) to Rs. 934 on Friday. BF Utilities has a low PEG ratio of 0.86, suggesting that the stock may be undervalued. Over the past year, the stock has delivered positive returns of about 52.3 percent, but has seen a decline of nearly 5 percent year-to-date.
In the second quarter of the fiscal year 2025, the company experienced a slight increase in revenue from operations, reaching Rs. 221 crores, a 1.4 percent year-over-year (YoY) rise, along with a net profit growth of nearly 4.6 percent YoY to Rs. 91 crores. Established in 2000, BF Utilities Limited is involved in generating electricity through windmills and engaging in infrastructure activities.
2. Tata Power Company Limited
With a market capitalization of Rs. 1.13 lakh crores, the shares of India’s largest vertically-integrated power company dropped by nearly 3.3 percent on BSE to Rs. 355.1 on Friday. Tata Power has a low PEG ratio
In the second quarter of fiscal year 2025, the company experienced a slight increase in its revenue from operations, reaching Rs. 15,698 crores, representing a 0.3 percent year-over-year growth. This growth was accompanied by a net profit increase of nearly 7.5 percent year-over-year to Rs. 1,093 crores during the same period.
Tata Power Company Limited is primarily involved in the generation, transmission, and distribution of electricity. The company also manufactures solar roofs and has plans to establish 100,000 EV charging stations by 2025.
TD Power Systems Limited, with a market capitalization of Rs. 6,393.3 crores, saw its stock rise by 0.7 percent on the BSE to Rs. 419.95 on Friday. The company has reported a low PEG ratio of 0.46, suggesting that the stock may be undervalued. Additionally, TD Power Systems has a Return on Equity (ROE) of 18.1 percent and a Return on Capital Employed (ROCE) of 25.4 percent.
In the second quarter of fiscal year 2025, the company experienced significant growth in its revenue from operations, reaching Rs. 306 crores, a rise of 11.7 percent year-over-year. This growth was accompanied by a net profit increase of nearly 24.2 percent year-over-year to Rs. 41 crores during the same period. TD Power Systems Limited specializes in manufacturing AC Generators and Electric Motors tailored to meet the specific needs and requirements of customers.
Jaiprakash Power Ventures Limited, with a market capitalization of Rs. 11,102.6 crores, saw its stock rise by 0.5 percent on the BSE to Rs. 16.95 on Friday. The company has reported a low PEG ratio of 0.18, indicating that the stock may be undervalued.Jaiprakash Power Ventures Limited specializes in the generation of thermal and hydro power, cement grinding, and captive coal mining.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.