NTPC share price jumps 5%, hits fresh all-time high; Axis Securities sees further upside

livemint.com:

BSE on Thursday, January 4. NTPC share price opened at ₹310.60 against its previous close of 306.25 and jumped 5 per cent to hit its fresh record high of ₹321.70. NTPC share price has witnessed strong gains in the last one year.

The stock has jumped 92 per cent in the last one year while in the last six months, it has gained about 65 per cent. Following robust gains of 11 per cent and 19 per cent in November and December, respectively, NTPC share price is up about 3 per cent in January so far. Brokerage firm Axis Securities believes this stock can rise even further.

Also Read: Nifty Realty jumps 6%, hits fresh 52-week high; Sobha, Brigade, Lodha jump 7-19% Axis has initiated coverage on the stock with a buy call, setting the target price at ₹345, implying a 13 per cent upside potential. "We initiate coverage on the stock with a buy rating and value the company by using a SoTP-based target price of ₹345. We value the company’s conventional thermal business at 1.8 times P/BV (price-to-book value ratio) on its FY26 consolidated regulated BV.

Moreover, we value its RE (Renewable Energy) business at EV/EBITDA of 12 times on FY26 EBITDA, which is a premium multiple against the industry average of 9-10 times to account for growth tailwinds and evolving RE-RTC (renewable energy round-the-clock) optionality," Axis said. Also Read: Sobha share price surges 20% to hit a fresh all-time high; should you buy the stock? "NTPC is a good portfolio bet given its stable dividend yield. However, further rerating potential is possible if the peak deficits increase in future and from value unlocking through the green energy IPO," the brokerage firm added.