Power:
Yes, Growing But Growth is eaten by High Capex. The Sector that has destroyed Wealth Of Several stakeholders. Several Companies Like RelInfra, PTC, NLC, RPower, TataPower were once in Nifty-50 but today they are Out, Why? Why No New Companies have not entered from this Sector in Nifty-50? Let us have some Research!
(Can Invest in One company But should not have weightage more than 2-3% due to High Debt Sector)
India is the Worldās 3rd largest producer & Consumer with a total installed capacity of 370 GW. Last 5 years India put around 100 GW capacity. Today Electricity coverage is 99.7% in India. The private sector generates around 46%. Share of usage in Industrial Consumption is 41%, residential is 25% while Agri is 18%. 21% is trans & Dstb Loss. The share of Renewable electricity is 39%. Government of India initiatives like āSaubhagyaā, ā24*7 Power Supplyā and āRural Electrificationā has boosted power demand in the Country. Still, Indiaās per capita consumption of Electricity is 1181 which is too low *& is expected to grow to 1700 in the year 2030 as the World average of 3044, China's 3298 & US 13246. Per Capita consumption in Gujarat is 2279 which is the highest among any state. 17 out of 20 World's fastest-growing Cities are in India. With the expected thrust on economic and industrial development and 24/7 power supply, Per Capita consumption is bound to increase. To bring per capita close to the global average, 3X power generation will be required. Still, just 39% of power is generated from renewable. India aspires to achieve 500 GW of renewable capacity by 2030.
Revenue of this Industry has Just grown by 14% but Profits were under continuous pressure due to the High debt burden segment & have grown by Just 5%. Even Fixed Securities would have given 7%. So we can say this is the Under-performed Industry despite good growth.