NTPC Share Price Falls 9.84% In 2025 So Far, Motilal Oswal Sees 15% Upside, Time To Buy Maharatna Stock?

NTPC Share Price Today: Shares of National Thermal Power Corporation (NTPC) may see some pressure in the short term, but its capacity addition targets and foray into the coal-to-gas conversion segment will boost its long-term growth story.

The Maharatna PSU stock was trading 0.31% lower at Rs 326.3 per share on BSE at 10 am. Motilal Oswal had maintained its 'neutral' stance on PSU stock, indicating a 15% upside in its valuation in the long-term.

NTPC Share Price Recommendation

NTPC is reportedly planning a large coal-to-synthetic natural gas (SNG) facility with a capacity of 5-10 million tonnes per year. SNG production from coal would lower dependence on imported LNG. Additionally, the PSU is planning to boost its capacity in the long-term.

"NTPC estimates SNG production costs at USD 10-12/mmBtu (link), which it believes is competitive with imported LNG (risks from emerging global gas glut). Surplus SNG could also be sold commercially, given its applications in sectors such as petrochemicals and fertilisers," stated the brokerage in its report.

The brokerage has maintained a cautious stance on NTPC, with a 'neutral' rating. It has fixed a target price of Rs 370 per share in the long term. "We retain our cautious stance on NTPC. While we like its long-term story, we believe execution may continue to trail investor expectations, especially at NTPC GREEN Energy Ltd (NGEL). Further, we believe valuations for NGEL (15% of our SoTP) have little room for rerating and may continue to face pressure. We reiterate our Neutral rating with a TP of INR370 (valued on an SoTP basis)," noted the brokerage.

NTPC Q2 Result

NTPC's net consolidated profit for the September quarter stood at Rs 5066.78 crore, against Rs 5274.59 crore reported in the year ago period. Despite some decline in net profit, NTPC's PAT (profit after tax) was 4% above Motilal Oswal's estimate.

The above estimate PAT was driven by upbeat other income. The brokerage, however, pointed out that the company's EBITDA missed the estimate as weak power demand led to soft generation trends.The company has planned to expand its capacity to 244GW by 2037. Medium-term capacity addition targets were set at 9.8/9.6/10.5 GW in FY26/27/28.

NTPC's net consolidated profit (attributable to shareholders of the company) stood at Rs 5066.78 crore in the September quarter of financial year 2025-26, against Rs 5274.59 crore during the same period a year ago. NTPC's total income was Rs 45,262.10 crore against Rs 45,197.77 crore a year ago.