NTPC Share Price: Shares of power sector giant PSU NTPC have fallen 26 percent from the record high. However, according to global brokerage firm Investec, it should be seen as a buying opportunity and there has been no change in its buy rating. However, the brokerage has reduced its target price. The effect of this reduction in target price is also visible on the shares today and currently it is at the price of Rs 331.70 with a decline of 0.57 percent on BSE. In intra-day it slipped 1.08 percent to Rs 330.00.
Why is brokerage interested in NTPC?
Investec has reduced the target price for investment in NTPC from Rs 457 to Rs 421 but maintained the buy rating. The brokerage says it has strong and sustainable coal-based capacity in a regulated business model that can absorb the risk. Apart from this, the company is also adding renewable capacity.
Talking about the business of the company, the production of the country’s largest power generator increased by 3.82 percent on an annual basis in the nine months April-December of the financial year 2024. The company generated about Rs 32.5 thousand crore electricity in the December 2024 quarter. During this period, it extracted about 3.09 crore tonnes of coal from mines, which was 23 percent more on annual basis. The total installed capacity of the group increased by 2,724 MW in the year 2024 to ultimately reach 76,598 MW.
Company Chairman and MD Gurdeep Singh said that the company plans to setup a nuclear project in Bihar which will increase its non-fossil energy portfolio. Apart from this, the company has also asked for more land from the Bihar government for the expansion of the nuclear plan. Gurdeep Singh said these things at Bihar Business Connect 2024 in Patna. He said that looking at the future of the energy sector, it is expected that nuclear is going to be very important and in such a situation NTPC is also entering it. For these reasons Investec has also bet on it.
How were the shares in one year?
NTPC shares had given more than 51 percent returns to investors in just 8 months. Last year on January 18, 2024, it was at Rs 296.55, which is a one-year low for its shares. From this low level, it jumped by more than 51 percent in 8 months to reach a price of Rs 448.30 on September 30, 2024, which is a record high for its shares. However, the rise of shares stopped here and at present it is about 26 percent downside from this high. Now if we talk further, according to Investec it may rise by about 27 percent from the current level.
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