Suzlon, JSW Energy, BHEL, Adani Green, Tata Power, Inox Wind shares: Buy, sell or hold?

As India’s power sector pivots toward an ambitious energy transition, brokerage firm JM Financial has released a comprehensive sector note outlining the road ahead for nuclear capabilities and utilities. 

Following an interaction with nuclear industry veteran Bhaskar Pandit—former Associate Director at NPCIL—JM Financial weighed in on the feasibility of India’s 100 GW nuclear vision by 2047 and provided fresh ratings for top power stocks.

In the renewable and utilities space, JM Financial remains bullish on several heavyweights. The brokerage has a ‘Buy’ call on Adani Green Energy, seeing an upside with a target price of Rs 1,289. similarly, JSW Energy has been tagged with a ‘Buy’ rating and a target price of Rs 697, suggesting a potential upside of over 50% from current levels.

Tata Power also features in the ‘Buy’ list with a target price of Rs 475, while NHPC has a target of Rs 96. The brokerage also covers ACME Solar Holdings, assigning a ‘Buy’ rating with a target price of Rs 330.

However, not all utilities share the same outlook. The brokerage has a ‘Reduce’ rating on Torrent Power, setting a target price of Rs 1,333, and a ‘Sell’ rating on SJVN with a target of Rs 74. 

The power equipment segment sees strong backing from the brokerage. Suzlon Energy has been assigned a ‘Buy’ rating with a target price of Rs 70. Peer Inox Wind also commands a ‘Buy’ with a target price of Rs 172.

State-run engineering giant Bharat Heavy Electricals (BHEL) is another key pick. JM Financial has a ‘Buy’ rating on the stock with a target price of Rs 320. The report highlights BHEL’s critical role in the nuclear supply chain, noting that alongside Larsen & Toubro (L&T), BHEL manufactures steam generators and is integral to the indigenised supply network.

For the public sector majors, the outlook is mixed. NTPC retains a ‘Buy’ rating with a target price of Rs 397. However, the brokerage offers a crucial reality check on NTPC's nuclear ambitions. Despite its size, the brokerage points out that NTPC has “no experience in nuclear power” and will depend entirely on government and NPCIL support for project execution, unable to operate as a private player.

Power Grid Corporation is rated ‘Buy’ with a target of Rs 321. Conversely, the brokerage has a ‘Reduce’ rating on Coal India, setting a target price of Rs 398. For IEX, the rating is ‘Add’ with a target of Rs 155.

Beyond individual stocks, the JM Financial delves deep into India's nuclear energy roadmap. JM Financial noted that achieving 100 GW of nuclear capacity by 2047 is ambitious but technically feasible, contingent on major reforms. The report cites the example of the United States, which built nearly 100 reactors in under two decades during the 1970s, suggesting India could replicate this pace with maturing domestic capabilities.

The expert interaction highlighted that fuel availability is not the limiting factor, as uranium supplies are abundant globally . instead, the bottlenecks are manpower shortages, stringent regulatory frameworks, and complex engineering documentation that leaves no room for deviation".