A recent report by the International Energy Agency (IEA) projects global electricity demand to grow by an average of 3.4 percent annually through 2026 due to an improving economic outlook expected to boost electricity demand in both advanced and emerging economies.
Analysts believe that despite the stupendous rise , the stocks are relatively undervalued. Besides the improving financial strength of the two power financiers, a steady rise in power demand in the country makes for a strong investment case.
Compared to historical averages, PSU banks are beginning to look expensive. Traditionally, PSU books used to quote at less than one time (stock) price to book value. Most of them are now quoting at more than one time the book value.