Power stocks: Nuvama picks ACME Solar, NTPC, Power Grid; check target prices

India's power demand rose 12.95 per cent year-on-year (YoY) in August 2026, supported by higher average temperatures amid a softer-than-expected monsoon, according to Nuvama Institutional Equities.

"Average temperature rose minimally to 27.91°C in Aug-26 as compared to 26.81°C in Aug-25. Peak demand reached ~258GW, up ~12.4 per cent YoY, from 229GW in Aug-25, while all-India thermal PLF improved to 66.8 per cent from 61.7 per cent," the domestic brokerage said.

Nuvama noted that electricity supply during solar hours continued to exceed demand, while prices remained low. In non-solar hours, supply declined, it added.

"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," the brokerage said.

Against this backdrop, Nuvama identified ACME Solar Holdings Ltd, NTPC Ltd and Power Grid Corporation of India Ltd as its top picks in the power sector.

The brokerage has a 'Buy' rating on ACME Solar and NTPC, with 12-month target prices of Rs 448 and Rs 445, respectively.

For Power Grid, Nuvama has a 'Hold' rating and a 12-month target price of Rs 283.

Meanwhile, shares of Power Grid climbed 2.27 per cent to close at Rs 272 on Thursday, while NTPC rose 1.13 per cent to settle at Rs 337. ACME Solar declined 1.33 per cent to end at Rs 396.95.