Market analyst Pradip Halder, Founder and CEO at PHD Capital, has shared his short-term trading strategy for two prominent power sector stocks: Adani Power Ltd and Tata Power Company Ltd. In an interview with Business Today Television, Halder offered specific recommendations for investors looking to navigate these counters.
Adani Power: Awaiting Correction for Entry
Halder noted that Adani Power has experienced significant gains recently. He advises traders to exercise patience and wait for the stock to test the Rs 185-197 zone before making a fresh entry. The stock was trading around Rs 220 on Friday. He emphasized that even if this correction takes one to one-and-a-half months, it would be prudent to utilize any mild dip in Adani Power's price for a fresh investment.
Tata Power: In a Value Zone with Upside Potential
In contrast, Halder views Tata Power as being close to its value zone. While the stock typically doesn't exhibit the sharp movements seen in Adani Power, he believes that at levels around Rs 377 per share, it presents a good opportunity. Halder projects potential targets of Rs 440, followed by Rs 480 for Tata Power, indicating a possible 25-30 per cent upside. For traders, he recommends maintaining a stop-loss around Rs 352.
Broader Power Sector Outlook
The power sector as a whole is currently valued at a P/E ratio of 19.3 times and a PB ratio of 2.4 times, according to a recent MOFSL report. This represents a 42 per cent premium compared to their 10-year historical averages of 13.6 times and 1.7 times, respectively.
Data from MOFSL also highlights robust growth in India's power demand, which increased by 10 per cent year-on-year in May to 167 billion units (BUs). The country also hit an all-time high peak power demand of 271 GW in May, marking a 17 per cent increase year-on-year.
In terms of capacity, 5.1 GW was added in May, including 3.2 GW of renewable capacity (2.8 GW solar, 0.4 GW wind) and 1.6 GW of new coal-fired capacity, alongside 0.3 GW of hydro additions. India's total installed power capacity stood at 542 GW by the end of May 2026. Power generation for May reached 177 BUs, up 11 per cent year-on-year, with renewables contributing a growing share of 27 per cent to the generation mix.
Disclaimer: This article provides market insights for informational purposes only and should not be considered investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.