India’s electricity sector is warming up. Literally and financially.
With temperatures soaring throughout the nation and more homes, businesses, and vehicles being electrified, electricity consumption is hitting record highs. In 2024, we experienced one of the steepest increases in peak power demand. And this is set to continue well into 2025 and beyond.
Experts are of the view that India’s power industry is on the threshold of a robust and sustained growth phase. In a recent report, InCred Equities says opportunities are arising across the board—ranging from conventional power generation to transmission infrastructure and renewable energy. The emphasis is no longer on coping with shortages but on gearing up for a long-term demand surge.
A number of factors are propelling this boom. Climatic temperatures are increasing, which is forcing cooling demands. Infrastructure growth is accelerating. Urbanization and transport electrification are accelerating. Consequently, Indian power demand may increase by up to 9–10% in 2025 alone.
This is not a seasonal tale. It’s a structural change.
And as the industry gears up to scale up, it may well become the next big money maker in the Indian share market. But where should one go? One great place to begin—valuation.
Let’s dig into the 5 of most affordable power stocks in India currently.
To keep things relevant and meaningful, we’ve filtered stocks based on a widely-used metric—EV/EBITDA. It’s one of the best ways to value power companies. Why? Because it considers both debt and earnings, and is ideal for capital-heavy sectors like power.
EV stands for Enterprise Value (market cap + debt – cash). EBITDA is Earnings Before Interest, Taxes, Depreciation, and Amortisation. A lower EV/EBITDA means the stock may be undervalued.
The filters we used for this list:
1. Have a market cap of more than Rs 500 crore
2. Have a positive EV/EBITDA
With that out of the way, let’s check out the 5 stocks.
Incorporated in 1994, Jaiprakash Power Venture operates in coal mining, sand mining, cement grinding, and production of thermal and hydroelectric electricity.
The current valuation of Jaiprakash Power Ventures stands at an EV/EBITDA multiple of 4.6x, which reflects comparatively favorable pricing versus peers. As per Screener.in, the EV/EBITDA of 27 companies considered as the peer group, the median valuation was 11. 65x.
Jaiprakash Power Ventures is currently trading below its 10-year median EV/EBITDA of 10.6x. This implies that the stock could be undervalued.
Over the last one year, its share price is down 3.8%.
Jaiprakash Power Ventures is actively investing in technology upgrades to meet future environmental regulations. It has signed contracts for Flue Gas Desulphurization (FGD) systems at both its Nigrie and Bina thermal plants, targeted for completion by December 2026.
The company is also expanding coal mining capacity and progressing on the development of its Bandha North coal block. These efforts are expected to improve operational stability, reduce compliance risks, and strengthen vertical integration.
Overall, the company seems focused on long-term sustainability and efficiency improvements in line with sectoral growth.
It is also exploring opportunities in hydroelectric power, which could support its transition towards cleaner energy. With demand for electricity expected to rise steadily, JP Power is strategically aligning itself to capture future growth.
Incorporated in 2000, BF Utilities is engaged in the generation of electricity through wind mills and Infrastructure activities.
BF Utilities is trading on an EV/EBITDA multiple of 5.9 times, placing it among the better-valued players in the power industry which are at a median of 11.65x. It is currently trading slightly lower than its 10-year median EV/EBITDA of 9.6 times. This valuation indicates the stock is not very pricey.
In the past one year, its stock price is up 0.7%.
BF Utilities appears committed to playing a long-term role in India’s renewable energy landscape. The company continues to focus on wind energy generation, ensuring high operational uptime and cost efficiency through preventive maintenance.
It is also gradually adopting stronger ESG practices and is expected to formalize its sustainability goals in the near future. With India’s vast wind energy potential and policy tailwinds for green power, BF Utilities is strategically placed to benefit.
Its steady approach indicates a focus on long-term value creation and alignment with national clean energy goals.
The management remains confident about demand stability in the renewable space. Strategic partnerships and group synergies may further support its operational and financial strength.
Incorporated in 1985, Gujarat Industries is a public sector undertaking (PSU) of the Government of Gujarat.
The company is engaged in the business of power generation with a present installed generation capacity of 1,184.40MW. The company has a diversified portfolio of thermal (gas and lignite), wind, and solar power plant assets in Gujarat.
Gujarat Industries Power is trading at an EV/EBITDA multiple of 6.1 times, as compared its peer group which trades at a median of 11.65x. It is currently trading higher compared to its 10-year median EV/EBITDA of 3.4 times.
In the past one year, its stock price has tumbled 22.4%.
Gujarat Industries Power is actively scaling up its clean energy portfolio. The company is setting up a massive 2,375 MW Renewable Energy Park at Khavda, Gujarat, which includes 2,000 MW of solar and 375 MW of wind capacity. This project is expected to be completed by 2026 and will be one of the largest hybrid renewable parks in the region.
In addition to that, GIPCL is expanding its solar footprint at vastan mine and exploring further wind and solar hybrid models. The company is also evaluating green hydrogen and battery storage opportunities to stay ahead of the energy transition curve.
With strong government backing, aggressive RE targets, and land already secured, GIPCL is positioning itself as a leading utility in India’s renewable energy future.
Incorporated in 1978, CESC is in the business of generation and distribution of electricity.
CESC is available at an EV/EBITDA multiple of 7.7 times, which represents a potentially fairly priced valuation. It peers trade at a median of 11.65x. It is currently trading higher compared to its 10-year median EV/EBITDA of 6.6 times.
In the past one year, its stock price has rallied 11.4%.
Mirae Asset Sharekhan has assigned a Buy rating on CESC with a target price of Rs 195. The target price is 7.4% higher than the closing market price as of 28 March 2025.
The brokerage draws attention to the robust emphasis by CESC on renewable energy, with 3.2 GW capacity (1.5 GW solar + 1.7 GW wind) scheduled by FY29, and 1.2 GW under implementation already. The company is also establishing a 10,500 TPA green hydrogen unit, reflecting its focus on clean energy.
The brokerage finds the above measures place CESC in good stead for long-term growth and sustainability.
CESC also has a total renewable capacity of 10 GW planned in Phase 2 through its arm Purvah Green Power. Several locations in high wind and solar potential states are in various stages of evaluation and development.
The firm has also bought Chandigarh Power Distribution, a further expansion in the distribution business. With digitalization, high-tech adoption, and ESG emphasis, CESC is getting ready to drive India’s next era of energy transformation.
RattanIndia Power Limited is a large private power generation company in India, having an installed capacity of 2,700 MW thermal power plants located at Amravati and Nashik (1,350 MW each) in Maharashtra, India.
The company is trading at an EV/EBITDA multiple of 9.1 times, which puts it on the fair side of the valuation band in comparison to its peers (median of 11.65x). It is currently trading lower compared to its 10-year median EV/EBITDA of 14.9 times. This implies that the market is pricing in steady performance with growth prospects.
In the past one year, its stock price has rallied 22.7%.
RattanIndia Power is well-placed to take advantage of India’s increasing base load power requirement, especially from its high-capacity 1,350 MW Amravati thermal power plant.
The firm is optimistic about the sustained position of thermal power as the pillar of India’s energy mix, particularly during peak demand forecasts. It has been continually enhancing plant availability and is monetizing idle capacity by selling electricity on the IEX.
Fuel security has also been improved through increased coal allotment, supporting operational stability in the near future. The management perceives thermal capacity addition to go on, with 4–5 GW ordering annually anticipated across the country.
Supported by strong regulatory tailwinds, prudent debt repayment, and strong stakeholder engagement, the company intends to be the leader in India’s changing energy landscape.
Conclusion
India’s power industry is at the threshold of a radical overhaul. With growing electricity demand, clean energy targets, and firm policy support, the sector is set to experience long-term expansion. India is likely to need approximately $700 billion of investments in the power sector to achieve its 2070 net-zero target, according to Moody’s.
But the journey to the future has its hurdles. Delays in execution, regulatory issues, and lack of competent manpower still beset progress. Financial strain in state-owned discoms too is a nagging issue.
Grid system investments, smoother clearance processes, and enhanced coordination among stakeholders will be critical to addressing the nation’s increasing energy demand. Sustaining growth with sustainability and affordability will require concerted efforts across policy, technology, and operations.
Although the potential cannot be denied, there should be an analysis that is full and balanced before deciding on any investment.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to deep deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.