Adani Power, Tata Power, NPTC Green: Bernstein initiates on power stocks, check targets

Power stocks jumped as much as 4 per cent during the trading session Wednesday as global brokerage firm Bernstein initiated coverage on select companies including Adani Power, Tata Power Company and others. Bernstein has given an 'outperform' rating to Adani Power Ltd, JSW Energy, and Tata Power, signalling confidence in their growth potential.

Bernstein highlighted that India's energy security has faced pressure twice recently—initially due to disruptions in Russian oil supplies and more recently because of the conflict involving Iran. While India has limited resources in oil and gas, it is relatively rich in coal and solar energy. This makes electrification a key long-term solution, noted to the brokerage firm.

The overseas brokerage firm has set a price target of Rs 177 for Adani Power and Rs 575 for JSW Energy Ltd, both representing an expected upside of up to 18-19 per cent from current market levels. Tata Power Company Ltd has been assigned a target price of Rs 443, indicating a possible increase of 15 per cent.

Shares of JSW Energy jumped nearly 3.96 per cent to Rs 503.45 on Wednesday, commanding a total market capitalization close to Rs 88,000 crore. Adani Power share rose more than 3 per cent to Rs 155.30, while Tata Power gained nearly 2.65 per cent to Rs 394.90 during the session.

The report noted that policy efforts are likely to focus on accelerating thermal and nuclear power capacity, alongside enhancing renewables, storage solutions, and grid infrastructure. Bernstein believes the most promising investment opportunities lie with companies involved in thermal, nuclear, storage, and grid-linked segments rather than those focused solely on renewable energy.

Conversely, Bernstein has initiated coverage on NTPC Green Energy Ltd with an 'underperform' rating. The price target for this stock is Rs 80, suggesting a downside of more than 16 per cent. The stock rose more than 2 per cent to Rs 97.73 in Wednesday's session.