Amidst a bearish market trend, the share price of Maharatna PSU giant, NTPC Ltd traded on a higher note. NTPC witnessed buying sentiment so much so that the stock jumped by nearly 1% and is trading near its day's high on October 18. Brokerage Sharekhan is the latest to like the stock ahead of its Q2 and has recommended BUY for a target price of Rs 460.
NTPC Share Price:
The large-cap PSU stock traded at Rs 420.60 apiece, up by 0.75% on BSE, with a market cap of Rs 4,07,841.78 crore. The stock is near its intraday high of Rs 420.80 apiece. While it is also a couple of rupees away from touching its 52-week high of Rs 448.30 apiece.
YTD, and NTPC stock zoomed by 36% on BSE, while in a year, the upside is about 74.13%.
Sharekhan On NTPC:
In Q2FY25, Sharekhan believes that NTPC will have weak generation and sales, but net profit will grow 14.9% y-o-y with increase in regulated equity. That being said, the brokerage predicts NTPC sales to come around Rs 41,135 crore in Q2FY25, gradually up 0.6% YoY but down by 7.4% QoQ. However, its PAT is predicted to be at Rs 4,465 crore in the second quarter of FY25, which would bag 14.9% YoY growth with a downside of 1% QoQ.
NTPC is Sharekhan's preferred pick in the energy and power sector. Giving a BUY recommendation, Sharekhan has fixed a target price of Rs 460 apiece.
Apart from Q2, NTPC stock price will be in focus ahead of its subsidiary, NTPC Green Energy's IPO worth Rs 10,000 crore, which will be entirely fresh issuance of equity shares.
Owing to NTPC Green IPO, ICICI Securities recommended BUY on NTPC. It maintained BUY on NTPC with an unchanged target price of INR 495, valuing the thermal business at 18x FY26E EPS of INR 438/share and RE portfolio at 12x FY26E EV/EBITDA.
NTPC is India's largest power utility with a total installed capacity of 76,048 MW (including JVs). Established in 1975, NTPC is steering ahead to be India's largest integrated power company and targets to become a 130 GW firm by 2032.
Notably, NTPC has a strong record of bonus issue and dividends.
Dividends: The company has distributed up to 42 dividends since February 2005, as per Trendlyne data. The stock paid dividends of 77.50% worth Rs 7.75 per share for FY24. It has a dividend yield of 1.85%.
Bonus Issue: NTPC has carried bonus issue only once and that was in March 2019. That time, the bonus issue ratio was of 1:5.
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