Maharatna PSU energy stock NTPC is buzzing near its 52-week high levels as the company plans fundraising to the tune of Rs 12,000 crore via bonds or debentures. The board of the company will meet on June 28 to consider and approve the same. NTPC share is recommended to buy, with the highest target price being Rs 467. Brokerages have given a positive outlook on NTPC.
NTPC Share Price:
The PSU stock rallied on June 26 to end at Rs 364.95 apiece, up by 1.14% with a market cap of Rs 3,53,879.83 crore. The stock is near its 52-week high of Rs 395 apiece, while trading higher by 97.5% from its 52-week low of Rs 184.75 apiece.
YTD, the stock has gained by 18% on BSE, while it rallied by 96% in a year.
NTPC Fundraising:
As per the regulatory filing, NTPC said that a meeting of the Board of Directors of the Company is scheduled to be held in New Delhi on Saturday, 29 June 2024 to, inter-alia, consider the issue of secured/ unsecured, redeemable, taxable/tax-free, cumulative/noncumulative, non-convertible debentures ("Bonds/NCDs") upto Rs.12,000 Crore, subject to approval of shareholders in the ensuing Annual General Meeting.
BUY/SELL NTPC Share Price?
As per Trendlyne data, the consensus recommendation from 25 analysts for NTPC Ltd. is BUY. EPS is expected to grow by 15.1% in FY25. The 1-year average target on NTPC is Rs 407.20 apiece, signalling a 12% potential upside ahead.
Global brokerages like NTPC share price as well. Jefferies maintained BUY on NTPC while raising the target price of Rs 445 with a positive outlook. Meanwhile, CITI also maintained BUY with a target price of Rs 467, which is the highest currently on NTPC, signalling a nearly 28% potential upside compared to the current levels. Furthermore, Morgan Stanley maintained Overweight on the stock, with a target price at Rs 390 and an outlook seen as positive.
According to Axis Securities earlier, NTPC's Robust Thermal Assets Provide Cash Flow Visibility. Its aggressive renewable capacity addition target, where it can mobilise funds at a lower cost of debt (~6% vs. 7-9% compared to private peers) puts it in a competitive position. Furthermore, NTPC has the Potential to supply RE-RTC power which can generate competitive tariffs.
Axis Securities note said, "We believe NTPC is a good portfolio bet given its stable dividend yield, and a further rerating potential can not be ruled out if the peak deficits increase in future." Adding the brokerage said, "We maintain our BUY rating on NTPC. We value the company's conventional thermal business at 2.3x (from 1.8x) P/BV on its FY26 consolidated regulated BV. We value its RE business at EV/EBITDA of 12x on FY26 EBITDA." The target price is Rs 420 on NTPC.
NTPC is set to pay its final dividend at the rate of 32.50% or Rs 3.25 per share) for the financial year 2023-24, subject to the approval of the Shareholders in the ensuing Annual General Meeting. The record date is yet to be announced.
Also, NTPC has already informed its shareholders that they will continue with IPO of their subsidiary engaged in the business green energy. It will be of the behemoth IPOs. NTPC has stated that the process of DRHP will begin after June month. The IPO listing of NTPC Green will keep NTPC in focus.
Click it and Unblock the Notifications
Sign in with Google