NTPC Stock Analysis: Aiming for INR 300 in 12 Months

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NTPC’s Stock Forecast: A Powerful Leap to INR 300

Introduction

NTPC Ltd., India’s largest power utility, has been a key player in the country’s power sector. With an installed capacity of 73,824 MW, including joint ventures, NTPC has ambitious plans to become a 130 GW company by 2032. The company’s current market price (CMP) stands at INR 240, and ICICI Securities has recommended a target price of INR 300 for the next 12 months.

NTPC Company Overview

Established in 1975, NTPC Ltd., formerly known as National Thermal Power Corporation Limited, is engaged in generating electricity and allied services. It is a public sector undertaking with the Government of India holding 51.10% of its equity shares. The company’s market capitalisation was INR 230,732.17 Cr as of September 22, 2023.

NTPC Financial Performance

NTPC has shown a promising financial performance over the years. The company reported a Consolidated Total Income of Rs 33783.62 Crore, up 2.08 % from last quarter Total Income of Rs 33095.67 Crore and up 19.01 % from last year same quarter Total Income of Rs 28387.27 Crore. The company reported a net profit after tax of Rs 4318.12 Crore in the latest quarter.

NTPC Stock Performance

NTPC Ltd., India’s largest power utility, has shown a promising performance in the stock market. As of September 27, 2023, the company’s stock price stands at INR 238.05. Over the past six months, the stock has delivered a return of 34.36% and a return of 41.13% over the last year. The company’s share price on BSE closed at Rs. 139.90 on June 21, 20221. The 52-week high for NTPC’s share price was Rs. 166.35, and the 52-week low for the company’s share price was Rs. 111.95.

Future Outlook

NTPC is transitioning towards an integrated energy company with a focus on clean and green energy. The company aims to reach 60GW of installed RE capacity by FY32. With India aiming to secure RTC power availability for its increasing base demand primarily through coal-based power, NTPC is expected to be the largest beneficiary.

ICICI Securities maintains a BUY recommendation with an unchanged SoTP-based target price of Rs196/sh and FY24E standalone/ consolidated EPS of Rs19.2/Rs202. However, considering the strong fundamentals and future growth prospects of NTPC, we believe that the stock has the potential to reach a target price of INR 300 in the next 12 months.

Conclusion

Investing in stocks requires careful analysis and consideration of various factors including company fundamentals, industry trends, and market dynamics. NTPC, with its strong fundamentals and growth prospects, appears to be a promising investment opportunity for investors looking for long-term growth.

Please note that this article is for informational purposes only and should not be considered as investment advice. Always do your own research or consult with an investment professional before making any investment decisions.

Disclaimer: Past performance is not indicative of future results. Investments in securities market are subject to market risks; read all the related documents carefully before investing.



Keywords : NTPC Ltd., Power Utility, Installed Capacity, Joint Ventures, Current Market Price, ICICI Securities, National Thermal Power Corporation Limited, Electricity Generation, Public Sector Undertaking, Government of India, Equity Shares, Market Capitalisation, Financial Performance, Consolidated Total Income, Net Profit After Tax, Stock Performance, Return on Investment, BSE Closing Price, 52-Week High, 52-Week Low, Future Outlook, Integrated Energy Company, Clean Energy, Green Energy, Renewable Energy Capacity, Real Time Gross Settlement Power Availability, Coal-Based Power Generation, Buy Recommendation, Target Price.

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