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.
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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.
#1 Jaiprakash Power Ventures
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,
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