Surging Demand, Surging Stocks: The Power Sector’s 2025 Play Part 2

Government Policy Support & Investment Boom Major government schemes like RDSS, GEC, and PM-KUSUM accelerating infrastructure upgrades. (Source: PIB) ₹1.3 lakh crore capex announced by Adani Group for FY25—massive boost to renewables and transmission infra. (Source: Business Standard) NTPC and Tata Power leading public-private growth with multiple joint ventures and green energy platforms. (Source: Economic Times) Stock Market Performance & Valuation Trends Power index valuation (PBV) moderating from 5x to ~3.7x, indicating re-entry opportunity for investors. (Source: Motilal Oswal) Positive earnings outlook supported by increase in long-term PPAs and rising electricity spot prices. (Source: ICICI Securities) Power stocks gaining favor with institutional investors due to strong cash flow visibility and sector reforms. (Source: HDFC Securities)