NTPC Shares Gain On Signing MoU With L&T For Methanol Plants

On Thursday, shares of public-sector company NTPC Limited, gained over 6 percent to Rs 100.60 after L&T Hydrocarbon Engineering signed an MoU (memorandum of understanding) with the company for CO2 to methanol plants.

Further, the power company said on Wednesday that it will reduce the cost of coal supplies at its Kudgi plant by using a newly constructed bridge. NTPC said that the transportation costs will be reduced to around Rs 200-500 per MT and transit time will fall by 8-15 hours. The move will bring down the cost of electricity generation, a company statement said.

The company is awaiting final approval from the South-Western Railway and will begin operations as soon as it gets clearance.

NTPC also reported a 5.9 percent fall in consolidated net profit at Rs 2,948.94 crore for the June ended quarter against Rs 3,132.73 crore in the same period a year ago.

Several brokerages have a buy rating on the stock. Morgan Stanley has an "overweight" rating on the stock with a target at Rs 138 per share and CLSA has a buy rating with a price target of Rs 140.