NTPC shares fall over 2% despite brokerages raising target; what should investors do?
NTPC share price declined over 2% on Monday after the company reported its Q2 results. NTPC shares fell as much as 2.45% to ₹230.75 apiece on the BSE. The state-run power generator NTPC reported a rise of 16.6% in its consolidated net profit for Q2FY24 at ₹3,885 crore as compared to ₹3,331 crore in the corresponding period last year.
The company’s revenue from operations fell marginally to ₹40,875 crore from ₹41,015 crore in the year-ago period. NTPC board also approved the first interim dividend of ₹2.25 per share for FY 2023-24 on the face value of paid-up equity shares of ₹10 each. The date of payment/dispatch of dividend will be November 23, 2023.
Read here: NTPC Q2 Results: Net profit rises 16% to ₹3,885 crore, revenue declines marginally; dividend declared Brokerages maintained their bullish view on NTPC and raised the target price after the announcement of Q2 results. Here’s what brokerages said: NTPC’s adjusted net profit for H1FY24 was ₹73 billion, up 4% YoY. The regulatory impact of previous year sales and fuel shored up the reported profit by ₹9.4 billion, the brokerage house said.
The company has 74 GW of installed capacity, with 17 GW (10 GW of conventional + 7 GW of Renewable Energy) of assets under construction. Further, NTPC has 39 GW under feasibility, making a case for a portfolio of 130 GW by 2032. Also Read: SBI Card share price drops over 7% as brokerages cut target price after Q2 results With renewed focus on renewable energy, Antique Stock Broking believes re-rating drivers like improving ESG scores and new capacity addition remain intact.
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