NTPC shares doubled investor wealth in a year: Price targets, technicals, valuation and more

NTPC shares have gained 99 per cent in one year and risen 50.51 per cent in six months. The stock reached an all-time high of Rs 360.35 on March 6, 2024.

Shares of state-owned NTPC Ltd are trading near their record high. The stock reached an all-time high of Rs 360.35 on March 6, 2024. The power sector stock ended flat at Rs 351.95 in Thursday’s session on BSE.

Earlier, NTPC stock opened higher at Rs 354.95 on BSE. NTPC shares have gained 99 per cent in one year and risen 50.51 per cent in six months. Market cap of NTPC rose to Rs 3.41 lakh crore on BSE. Total 5.95 lakh shares of the firm changed hands amounting to a turnover of Rs 25.24 crore.

The stock fell to a 52-week low of Rs 166.65 on April 20, 2023.

The stock’s PE ratio stands at PE 17.51, lower than the sectoral PE of 25.25. On the other hand, PowerGrid stock has a PE ratio of 17.31, Tata Power (37.7), Adani Power (9.37) and Adani Energy Solutions (102.35).

The power sector stock has a price to book ratio of 2.45. In comparison, PowerGrid stock has a P/B ratio of 2.92, Tata Power (5.22), Adani Power (11.69) and Adani Energy Solutions (10.82).

In terms of technicals, the relative strength index (RSI) of NTPC stock stands at 63.1, signaling it’s neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.6, indicating low volatility in a year. NTPC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Brokerage Sharekhan has maintained a Buy on NTPC with a revised price target of Rs 425 given strong earnings growth visibility, reasonable valuation of 2x FY26E P/BV and healthy dividend yield of 3%.

NTPC’s plans to add significant thermal power capacities are coming at right timing of peak power cycle. Core thermal power business earns a regulated RoE and a higher capex intensity would drive earnings growth and offer cash flow visibility, said the brokerage.

For NTPC, Bernstein has a target price of Rs 340.

Shiju Koothupalakkal – Technical Research Analyst, Prabhudas Lilladher said, “The stock has overall indicated a rising trend on the daily chart and recently with some profit booking seen has slipped from the peak zone of Rs 348 levels with near-term support visible near Rs 328 zone of the long-term trendline zone where it can consolidate and anticipate for further upward move for next higher targets of Rs 358 and Rs 372 levels, respectively. At the same time, a decisive breach below the significant 50EMA zone of Rs 317 shall weaken the bias overall and thereafter, can expect for further slide.”

Brokerage JM Financial has a ‘buy’ call on the NTPC stock. It has set a target of Rs 368 apiece.

On March 5, NTPC awarded a Rs 9500-crore order to BHEL for setting up the Singrauli Super Thermal Power Project, Stage-III (2×800 MW) in Sonebhadra District, Uttar Pradesh.

The order pertained to the supply of equipment – boiler, turbine, generator and associated auxiliaries along with electrical and C&I, balance of plant packages etc.

NTPC posted a 7% year-on-year growth in its consolidated net profit to Rs 5,209 crore in Q3 against Rs 4,854 crore a year ago. On a sequential basis, net profit climbed 10% from Rs 4,726 crore posted in the preceding September quarter.

Revenue from operations fell 4% year-on-year to Rs 42,820 crore in the last quarter against Rs 44,602 crore in the corresponding period of last year

NTPC was amongst top picks of Jefferies India Pvt Ltd.

 Analysts at Jefferies had said that “We estimate Power Capex CAGR will rise 9x at 20% in FY23-26 versus just 2.2% in FY10-20. As India enters a phase of capex-driven GDP growth, power intensity should rise.  NTPC is a major beneficiary of the capex uptick.FY23-26 as per Jefferies, should see NTPC’s consolidated non-fossil portfolio rise 4.9x to 15 GW. 

Jefferies estimates factor in 14 GW solar/wind Renewable energy by FY26 versus NTPC’s target of 15 GW.

Monetisation plans with stake sale/IPO over two to three years up as more assets come on the ground are an additional trigger ahead, Jefferies had said.  Interest cost advantage gives room to bid 10-15% lower and earn same equity IRR (internal rate of return).

Jefferies Target price stood at Rs415 valuing the company at 2.3 times consolidated Price to Book FY26 estimates, in line with the average of the past upcycle.

With Thanks Reference to: https://www.businesstoday.in/markets/stocks/story/ntpc-shares-rise-target-price-outlook-technicals-420700-2024-03-09 and https://www.livemint.com/market/stock-market-news/ntpc-share-price-rises-4-scales-52-week-highs-should-you-buy-sell-or-hold-11709534259845.html