Rs 3.25 Dividend: Sharekhan Sees Maharatna Power CPSE Rising, Buy Call Assigned; TP Rs 425

Leading brokerage firm Sharekhan has recommended buy call to Maharatna CPSE NTPC Ltd share with target price of Rs 425 per share. Last trading price of NTPC share on BSE is Rs 360.70 per share with intraday gain of over 3% today. NTPC Ltd shares already offered 103% return in last 1-year only and 27% return in last 6-months span.

Life Insurance Corporation of India (LIC) has stake of 4.55% in NTPC Ltd. NTPC recommended a final dividend of Rs 3.25 per share and yet to declared record date for the same. Check key details below:

Sharekhan Recommends Buying NTPC Shares: Sharekhan has recommended buy call to NTPC shares with target price of Rs 425 per share.

NTPC Latest Dividend Recommendation: The BSE filing of NTPC issued as on May 24, 2024 stated, "Further, the Board of Directors have also recommended the final dividend at the rate of 32.50% (Rs 3.25 per share) for the financial year 2023-24, subject to the approval of the Shareholders in the ensuing Annual General Meeting. The aforesaid final dividend is in addition to the first interim dividend at the rate of Rs. 2.25 per share & second interim dividend at the rate of Rs. 2.25 per share of face value of Rs. 10/- each for the financial year 2023-24 paid in November'23 & February'24, respectively."

NTPC Share Performance: The 52-week high price of NTPC Ltd share on BSE is Rs 395.00 per share (04/06/2024) and 52-week low price is Rs 177.85 per share (08/06/2023), respectively. NTPC shares fell over 3% in last 2-weeks, soared 129% in last 2-years, and gave returns of 210% in last 3-years. The power generation PSU has a market capitlisation of Rs 3,49,758.75 crore. NTPC has a PE or price-to-earnings ratio of 19.35. PE is a quick way to find out if a stock is undervalued or overvalued. Therefore, lower the P/E ratio, the better it is for potential investors.

NTPC Bonus Share History: The large cap PSU offered 1 bonus issue since March 19, 2019. The last Bonus that NTPC declared was in the ratio 1:5 with ex-date of March 19, 2019. It implied shareholders of NTPC received 1 bonus share for every 5 shares held in 2019.

NTPC Dividend History: NTPC announced 41 dividends since February 25, 2005. In last 12 months, NTPC announced an equity dividend amounting to Rs 7.50 per share. At the current share price of Rs 360.70/share, NTPC offers a dividend yield of 2.08%.

NTPC About: 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. NTPC has comprehensive Rehabilitation & Resettlement and CSR policies well integrated with its core business of setting up power projects and generating electricity. 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 Sharekhan. 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.