1:5 Bonus Issue, 42 Dividends: BUY Maharatna PSU Energy Stock NTPC; PL, Jefferies Set Rs 480-485 Target

Maharatna PSU giant, NTPC Ltd emerged as top-performing stock and even touched a new 52-week high on BSE and NSE despite the bearish trend in the overall market on Monday, September 30, 2024. NTPC ended the month of September with upside of 8%. Brokerages Prabhudas Lilladher and Jefferies are the latest to recommend BUY on NTPC with target prices ranging from Rs 480 to Rs 485 in the near term. NTPC will be in focus ahead of its subsidiary, NTPC Green Energy's Rs 10,000 crore IPO launch.

NTPC Share Price:

During the trading hours of September 30, NTPC stock touched a new all-time high of Rs 448.30 apiece on BSE, before ending at Rs 443.10 apiece up by 1.3%. The market cap of the company is at Rs 4,29,659.28 crore.

Data from BSE showed that NTPC's price-to-equity ratio is at 23.19x, while return on equity is healthy at 12.36%. YTD, NTPC stock surged by 43.17% on BSE.

BUY NTPC Share Price:

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher on NTPC:

In its latest note, Parekh said, the stock has indicated a strong pullback from the significant 50EMA zone of 395 levels and has given a decisive breakout above the descending channel pattern on the daily chart at the 417 zone with strong bias witnessed.

Currently a positive candle formation coming out of the consolidation zone has further improved the bias and with the RSI on the rise with positive indications and rising volume participation, has made the stock look attractive and further rise is anticipated in the coming days, Parekh highlighted.

Finally, Parekh added, "We suggest to buy the stock for an upside potential targets of 446 and 480 levels respectively keeping the stop loss at 415 level."

Jefferies On NTPC:

The global brokerage has maintained BUY with target price of Rs 485 per share. The outlook positive on the stock.