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Top Utility stocks pick for investment in India in 2024

stock market
Published Date: 18 Apr 2024Updated Date: 24 Sep 20246 mins readBy MOFSL
Best Utility stocks

Introduction:

As a stock market investor, you constantly look for opportunities to expand or diversify your portfolio. You might search for stocks that can provide high returns in the long run. However, for rookie investors, finding the right stocks amid the vast pool of companies listed on the Indian stock exchanges may seem like looking for a diamond in a coal mine.

To take some load off your back, we have curated a list of top utility stocks for investment in India in 2024. These stocks have the potential to outperform the markets and provide you with unbelievable returns in the long term. Keep reading.

What are utility stocks?

Before delving into the top utility stocks for investment, you must know what utility stocks are. These stocks represent equity shares in companies that provide fundamental services, such as electricity, power, energy, gas, and water. These are usually large-cap companies and have traditionally been considered safer investment avenues with steady returns.

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Utility stocks generally belong to government-owned companies. In case, the companies aren’t government-owned, they have to abide by the strict protocols laid down by the government. It’s because they provide services essential for the survival of the citizens. Consequently, these companies enjoy near-monopoly statuses in the market and offer fantastic investment opportunities.

Best utility stocks to invest in India in 2024

Some of the best utility stocks in India you can contemplate investing in 2024 are:

1. NTPC Limited

NTPC stands for National Thermal Power Corporation. It is India's largest power-generating company, contributing significantly to the nation's energy needs. With a diversified portfolio spanning thermal, hydro, solar, and wind power generation, NTPC has maintained a steady growth trajectory. Its robust infrastructure, efficient operations, and government support make it a compelling choice for investors looking for stability and long-term growth in the utility sector.

2. Power Grid Corporation of India Limited

Power Grid Corporation of India Limited plays a pivotal role in India's power transmission network. The company is responsible for ensuring the seamless flow of electricity across the country. As India continues to expand its power infrastructure to meet growing demands, Power Grid's strategic investments in transmission projects and technological advancements position it as a promising utility stock for investors. Additionally, its status as a Maharatna company and government backing provide added confidence.

3. Tata Power Company

Tata Power Company Limited is a subsidiary of the renowned Tata Group. The company is a leading integrated power company in India with a strong presence across the entire power value chain. From generation and transmission to distribution and renewable energy projects, Tata Power has demonstrated resilience and adaptability in a rapidly changing energy landscape. With a focus on sustainability and renewable energy initiatives, it remains an attractive option for investors seeking exposure to India's evolving energy sector.

4. Gujarat Gas Limited

Gujarat Gas Limited is a prominent player in the natural gas distribution segment, catering to industrial, commercial, and residential customers in Gujarat and neighbouring states. With increasing emphasis on cleaner fuel alternatives and government initiatives promoting a gas-based economy, GGL is well-positioned to capitalise on the growing demand for natural gas in India. Efficient operations, an expanding network, and a focus on customer satisfaction make GGL a compelling utility stock for investors.

5. SJVN Limited

SJVN Limited, an abbreviation for Satluj Jal Vidyut Nigam, is a government-owned company based in Shimla, Himachal Pradesh. The company specialises in hydroelectric power generation. Established in 1988, it operates under the auspices of the Indian and Himachal Pradesh governments. SJVN oversees the operation of two hydroelectric power plants, harnessing water resources to generate electricity. Combined, these plants can produce approximately 1912 MW of power. The stock has gained more than 296% in the trailing year and is one of the most attractive utility stocks on this list.

The final word

Amidst India's evolving energy landscape and government initiatives promoting sustainability and infrastructure development, utility companies play a crucial role in powering the nation's progress. Investors looking to capitalise on this growth trajectory should consider allocating a portion of their investments to the top utility stocks mentioned above. However, thorough research and careful analysis are essential to make informed decisions tailored to your financial goals and risk tolerance.

 

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Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
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