Power push: NTPC, Power Grid top picks

Timely execution and ability of discoms to provide uninterrupted power hold key for demand

The ‘Saubhagya’ scheme, which aims at providing household electrification is positive for improving demand. While there is surplus power supply in the country, demand is lagging, impacting profitability of producers. Given this, addition of new customers would help.

For complete benefits to come through, timely execution, ability of distribution companies (discoms) to provide uninterrupted power and a paying customer base would be crucial. Thus, the Street will also remain watchful. For profitability growth and sustained demand momentum, a higher share of the more remunerative commercial and industrial segment is important.

Sabyasachi Majumdar, senior vice-president and group head at Icra Ratings, says the