NTPC Ltd, a Maharatna PSU energy giant, has corrected significantly in the past six months. Simply put, the stock has given zero returns to investors in half-yearly performance in 2024. This is despite the new listing of its subsidiary, NTPC Green Energy. Recently, the company touched a new milestone with its subsidiary Ratnagiri Gas and Power Private Limited (RGPPL) Township being the first township to achieve the Net Zero certification from IGBC. Following this, the majority of brokers have recommended BUY on NTPC. There is the potential of more than a 30% upside in NTPC ahead.
NTPC Share Price:
On BSE, NTPC price closed at Rs 333.65 apiece, broadly flat, with market cap of Rs 3,23,529.27 crore. The stock's 52-week high and low are at Rs 448.30 apiece and Rs 296.55 apiece respectively.
NTPC's weekly performance is down by 5.3%, while the stock has dipped by 9.5% on month-on-month, and lower by 8% on a six-monthly basis so far. Due to these declines, NTPC's YTD gains have been squeezed to 8.02%.
NTPC Solar Project:
As per the regulatory filing, NTPC announced the commercial operation of its second part capacity of 30 MW out of 150 MW Gujarat Solar PV Project in Mesanka, Gujarat of NTPC Renewable Energy Limited (NTPC REL), a step-down subsidiary of NTPC Limited through its subsidiary NTPC Green Energy Limited. The project was issued by Gujarat Energy Development Agency. The first part's capacity of 60 MW has already been declared for commercial operation in July 2024.
With this, the total installed and commercial capacity of the NTPC group has now become 76560.68 MW.
Also, Viswajit Srinivasan, a senior banker of Indian origin based out of the UK, stated "Ratnagiri Gas and Power Private Limited (RGPPL) Township being the first township to achieve the Net Zero certification from IGBC is a remarkable milestone. It has been estimated by the IGBC that building projects consume 10% of all water consumption in India and reduced raw water consumption, better water management and use of alternate water can slash consumption by up to 50% compared to the national baseline and affect significant cost savings as well. As India becomes more urbanised, the benefit derived from such measures, especially for larger developments cannot be overemphasised. India has 18% of the world's population but only 4% of water resources with average per capita water availability in 2031 is projected to be 1367 cu.m."
BUY NTPC Stock:
As per Trendlyne data, the consensus recommendation from 26 analysts for NTPC Ltd. is BUY. EPS is expected to grow by 13.3% in FY25. The average 1-year target price is at Rs 445.80, signalling 34% potential upside ahead. Meanwhile, brokerage Sharekhan earlier suggested BUY with target price of Rs460, which signals a nearly 38% potential upside.
Additionally, broker Antique Stock Broking suggested BUY on NTPC for a target price of Rs 477, which is the highest on the stock.
So far, NTPC has carried healthy bonus issues and strong dividends.
Dividends: The company delivered about 43 dividends since February 2005, as per Trendlyne data. In the past 12 months, the company paid up to Rs 8 dividend per share. Currently, it has a dividend yield of 2.40%.
Bonus Issue: The company delivered one bonus issue in the ratio of 1:5 in March 2019.
NTPC is India's largest integrated power company, dedicated to lighting every corner of the country and building a sustainable future for all. As a leader in the power sector, we are committed to generating efficient and affordable power, aiming to achieve 130 GW by 2032.
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