Tata Power, Torrent Power, and Power Grid: Top 3 stocks for 28% returns in one year

Power stocks have faced a steep decline over the last six months, but analysts from domestic brokerages are optimistic about the recovery in the long term. Here’s a look at three large-cap power stocks that experts are recommending for investment, with potential returns of up to 28%.

Power Sector Performance Over the Past Six Months

Shares of power companies have taken a hit recently. For instance, Tata Power dropped 16.14%, from Rs 436.7 to Rs 366.2, while Power Grid fell by 16.31%, from Rs 340.75 to Rs 285.15. Torrent Power also saw a significant decline of 24.62%, from Rs 1,768.05 to Rs 1,332.6.

Despite these setbacks, analysts see significant upside potential for investors in the coming year.

Tata Power – Target Price: Rs 470 (28.34% Potential Upside)

ICICI Securities recommends buying Tata Power, setting a target price of Rs 470, which implies a potential gain of 28.34%. Another brokerage, JM Financial, has a similar buy recommendation with a target of Rs 456, offering an expected return of 24.52%.

Torrent Power – Target Price: Rs 1,593 (19.54% Potential Upside)

JM Financial has also recommended a 'buy' stance for Torrent Power, with a target price of Rs 1,593, suggesting a potential upside of 19.54% over the next 12 months.

Power Grid – Target Price: Rs 351 (23.09% Potential Upside)

For Power Grid, JM Financial advises buying, with a target price of Rs 351, indicating a possible 23.09% increase in value over the next year.

Disclaimer: The views expressed in this article are those of investment experts. Readers are advised to consult with financial advisors before making any investment decisions.