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Power sector stocks may see lot of volatility even as demand remains strong

Cost of inputs and funds, working capital needs and sales-mix key factors to influence prospects

Topics
Power Sector | stocks | power crisis

Devangshu Datta  |  New Delhi 

On April 16, as evening peak time approached, the cost of electricity at the exchange climbed up to Rs 10.31 per unit by 4 pm
Power demand is expected to grow by 8-9 per cent year-on-year (YoY) in Q1, 2022-23 and merchant power is likely to be sold at averaged rates of Rs 6 per unit or higher through April-June 2022

There are conflicting trends in the but the overall impression is that the sector is coming under pressure. The inflationary impact of the Ukraine War, on petroleum, natural gas and coal has driven up the cost of thermal power. But the economic recovery continues, albeit at a slower pace, which means that demand is rising. But domestic coal shortages and high imported prices could affect generation.

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First Published: Tue, May 10 2022. 20:39 IST
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