Maharatna PSU Stock Set To Pay 1st Interim Dividend Of Rs 2.25/Share, Should You Buy?

Maharatna PSU stock NTPC witnessed a surge of 38.3% year-on-year (YoY) in its consolidated net profit to Rs 4,726.4 crore for the second quarter of financial year 2023-24 on Saturday as revenue declined marginally. The company declared its consolidated net profit at Rs 3417.67 crore in the year ago period. Board of directors of the state-run company also gave their nod to first interim dividend of Rs 2.25 per share on the FV of Rs 10 each for FY 2024. Last trading price of NTPC share on BSE is Rs 236.55 per share with intraday gain of 2.12%. Dividend is expected to paid on November 23, 2023, according to the BSE filing. Check detail below:

NTPC Declares 1st Interim Dividend: As per the BSE filing of the company issued on October 28, 2023, "Further, Board of Directors in its aforesaid meeting decided, inter alia, to pay first interim dividend at the rate of 22.5% (Rs 2.25/- per share) on the face value of paid-up equity shares of Rs. I 0/- each for the financial year 2023-24. The date of payment / dispatch of dividend shall be 23 November 2023."

NTPC Dividend Record Date: The Company fixed Saturday, November 4, 2023 as the "RECORD DATE" for the purpose of ascertaining the eligibility of the shareholders for payment of interim dividend.

NTPC Q2 Results: The company announced its total revenue for the quarter ended September 2023 at Rs 44,983.35 crore, up 1.8% as against Rs 44,175.03 crore declared in the corresponding quarter of last year. NTPC declared its EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 13,081.5 crore, up 18/7% as against Rs 11,019.3 crore announced in the corresponding period of last fiscal year. EBITDA margin soared by 416 basis points (bps) to 28.8% from 24.6%.

ICICI Direct Recommends Buy Call: According to brokerage firm ICICI Direct, We maintain our BUY rating on NTPC. We value the stock at Rs 300 per share (based on 1.8x FY25 Book Value). NTPC has set out an aggressive renewable capacity addition plan to the tune of 16000 MW over FY24-FY26, which will scale up the green portfolio of the company and lead to rerating of the stock. Per year addition of 4000-5000 MW of renewable capacity and strong growth in regulated equity in the conventional thermal portfolio We estimate EBITDA and PAT to grow at 16.1%, and 16% CAGR respectively over FY23- 25E."

NTPC Dividend History: NTPC declared 40 dividends since February 25, 2005. In last 12 months, NTPC announced an equity dividend amounting to Rs 7.25 per share. At the current share price of Rs 236.55, it offers a dividend yield of 3.06%, according to Trendlyne.

NTPC Stock Performance & Return: Last trading price of NTPC stock on BSE is Rs 236.55 per share. Its 52-week high price is Rs 251.50 per share and 52-week low price is Rs 161.20 per share, respectively. The company's market capitalisation is Rs 2,29,374.64 crore. NTPC shares gained 41% YTD, soared 39% in last 1-year, surged 68% in last 2-years, and offered return of 165% in last 3-years.

NTPC About: NTPC is India's largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. 4, 2023 as the "RECORD DATE" for the purpose of ascertaining the eligibility of the shareholders for payment of NTPC became a Maharatna company in May 2010. As of January 2020, there are 10 Maharatnas CPSEs in India. NTPC is ranked No. 2 Independent Power Producer(IPP) in Platts Top 250 Global Energy Company rankings.

Disclaimer: The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.