NTPC Limited’s share price went up more than 4% on Monday, reaching an all-time high of ₹358.30 on the NSE during trading hours. It’s worth noting that NTPC stock was the biggest gainer among Nifty-50 stocks.
The reason behind this surge is the strong demand for power in the country, which is good news for power producers like NTPC. The company is also making moves to expand its capacity, boosting investor confidence.
In a recent meeting on March 3, 2024, NTPC’s Board of Directors approved an investment for the Singrauli Super Thermal Power Project, Stage-III (2×800 MW), estimated at ₹17,195.31 crore. This expansion is expected to contribute to future capacities, with NTPC’s group capacity already crossing the 75 GW mark in March.
On March 1, NTPC announced the successful completion of trial operations at Unit-2 of the North Karanpura Super Thermal Power Project in Jharkhand, adding 660 MW to its installed capacity.
Analysts, including those at Jefferies India Pvt Ltd., have been positive about NTPC due to its capacity growth and strong power demand. Jefferies estimated a significant rise in NTPC’s consolidated non-fossil portfolio and highlighted the company’s target of achieving 15 GW in solar/wind renewable energy by FY26.
Jefferies sees NTPC’s monetization plans, including stake sales and IPOs over the next two to three years, as an additional positive factor. The firm also notes NTPC’s interest cost advantage, allowing it to bid lower and still earn the same equity IRR (internal rate of return).
Jefferies has set a target price of Rs415 for NTPC, valuing the company at 2.3 times consolidated Price to Book FY26 estimates, in line with the average of the past upcycle. Overall, NTPC’s strong performance and growth plans make it a top pick for analysts.
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