Dividend Alert By NTPC: 7th August Record Date For Rs.3.25 Payout; Buy For The Opportunity?

The largest energy company in India, NTPC was founded in 1975 with the goal of accelerating the country's power growth. The company also engages in coal mining, ash utilisation, rural electrification, power trading, consultancy, and professional training for power employees. May 2010 saw NTPC become a Maharatna corporation. The company's announcement of the record date for its upcoming dividend has put the PSU stock in the spotlight. For further information, see the paragraph below.

NTPC Dividend

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation of disclosure dated 24th May, 2024, it is hereby informed that the Company has fixed Wednesday, 7th August, 2024 as Record Date for the purpose of ascertaining the entitlement of Members for the Final Dividend of Rs.3.25/- (Three Rupees twenty five paisa only) per share (on the face value of Rs. 10/- each) on the Equity Shares of the Company for the Financial Year 2023-24 as recommended by the Board of Directors of the Company in their meeting held on 24th May 2024. If the Final Dividend, as recommended by the Board of Directors, is approved at the ensuing Annual General Meeting, payment of such dividend, subject to deduction of tax at source, will be made on or after 11th September 2024," said NTPC in a stock exchange filing.

NTPC Q1 Results

In Q1 FY25, NTPC saw a 12% rise in its consolidated net profit, amounting to Rs 5,506 crore, compared to Rs 4,907.1 crore in the same period the previous year. The total income for the quarter was Rs 48,981.6 crore, up 12.8% from Rs 43,390.02 crore during the same time last year. In addition, the company declared a net profit of Rs 4,511 crore on a standalone basis, which is around 11% more than the Rs 4,066 crore earned during the same time last year. From Rs 39,122.25 crore in the same quarter last year, revenue from operations climbed by 13.5% year over year.

NTPC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "The stock has recently breakout and retest of Range on the daily chart with a significant increase in trading volume, indicating a potential breakout. If the price manages to close above the Rs 408 level, it may have the potential to reach short-term targets of Rs 440 & Rs 460. On the other hand, immediate support levels are located at Rs 385. These levels can be considered as opportunities to buy on dips."

"The Relative Strength Index (RSI) currently stands at 63.16 and is trending upward, indicating increasing buying momentum. To prudently manage risk, it is advisable to set a stop-loss (SL) at Rs 380. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, NTPC appears to present an appealing buying opportunity for those aiming for a Rs 440 & Rs 460 price target, provided that appropriate risk management measures are in place," the analyst further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.