Macquarie sees bright prospects for India’s power utilities and lenders: Buy calls for PFC, REC, NTPC, PGCIL

Macquarie analysts highlight India’s electric utilities and power lenders as prime beneficiaries in the ongoing energy transition. The sector enjoys tailwinds from the push for energy security and renewable adoption. With strong balance sheets, these companies are well-positioned to ramp up capital expenditures, accelerating growth potential.

Among lenders, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) stand out with strong loan growth prospects, robust return ratios, and healthy balance sheets. Macquarie has set target prices for PFC and REC at ₹630 and ₹660, respectively, reflecting optimism around their growth trajectory.

In the utility space, NTPC and Power Grid Corporation of India (PGCIL) are seen as top picks due to their established roles in India’s energy landscape. Macquarie has set target prices at ₹475 for NTPC and ₹380 for PGCIL, viewing both as central players in driving and benefiting from the nation’s energy cycle.