NTPC shares rally 5% to fresh record high. Here's why
NTPC rallied 5% to hit a fresh record high at Rs 412.6 in Tuesday's trade on BSE after the global brokerage firm Jefferies maintained its ‘Buy’ rating on the state-owned company and increased the target price from Rs 445 to Rs 485.
The global brokerage firm believes NTPC's execution pace is expected to pick up significantly. Jefferies further stated that NTPC already has a 24 GW renewable energy pipeline in place and is targeting 60 GW by 2032. Additionally, earnings visibility is improving, particularly with thermal power projects, as 9.6 GW is currently under construction and another 15.2 GW is set to be awarded.
Jefferies also highlighted that NTPC's regulated return on equity (ROE) is at 15.5% for the fiscal years 2025 to 2029, with a re-rating anticipated as the execution ramps up. Furthermore, nuclear power is identified as an emerging opportunity for the company.
At 10:32 am, the scrip was trading 3.5% higher at Rs 407.6 on BSE. The stock has jumped 94% in the past year, delivering multibagger returns of 167% over the past two years.
In Q1 FY25, NTPC reported a standalone net profit of Rs 4,510.98 crore, up by 11% YoY, while the revenue from operations went up to Rs 44,419.22 crore in the same period. The revenue from operations was up by 13.5% on a year-on-year basis from Rs 39,122.25 crore in the same quarter a year ago.
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NTPC has also declared a final dividend of Rs 3.25 per share for its eligible equity
