NTPC share price hits fresh all-time high; should you book profit? Here’s what experts say

NTPC share price extended its record-setting run for the second consecutive session as it rose almost 3 per cent to hit its fresh all-time high of ₹325.60 in morning trade on BSE on Friday, January 5.

NTPC share price opened at ₹322.50 against the previous close of ₹317.10 and climbed 2.7 per cent to its record high of ₹325.60. The stock, however, pared gains soon and traded 0.74 per cent higher at ₹319.45 around 10:20 am.

In the previous session, the stock gained 3.5 per cent.

NTPC share price has jumped 90 per cent in the last one year while in the last six months, it has gained about 63 per cent.

Brokerage firm Axis Securities expects this stock to rise even further. Axis has initiated coverage on the stock with a buy call, setting the target price at ₹345.

"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.

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Axis Securities is positive about the stock mostly because of the company's healthy growth prospects. Moreover, the company is expected to be a key beneficiary of growing power demand in the country due to its strong position in thermal power and plans to significantly increase renewable energy capacity.

Axis pointed out that NTPC's substantial portfolio in conventional power, with a firm cost-plus business model, positions it well in a growing peak power cycle. This structure contributes to stable cash flows and will facilitate growth led by renewable energy.

The brokerage firm underscored that NTPC has an ambitious target of 60 GW of renewable capacity (RE) by FY32 from the current 3.3 GW. Presently, nearly 7.3 GW of RE projects are under construction and it has secured tenders and bilateral tie-ups for another 10 GW of RE capacity, creating a visible pipeline of more than 20 GW in the near term.

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While the fundamentals make NTPC an attractive call for the long term, some technical analysts suggest some profit booking at this juncture could be a good move.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers observed that at the current juncture, NTPC might face resistance of ₹325–330 since there are few Fibonacci ratio clusters near said zone.

"One can opt for profit booking in the zones of ₹320–330 and wait for meaningful corrections. On the flip side, a decisive close above ₹330 might take the counter near ₹350–360 levels," said Patel.

On the other hand, some technical analysts believe the stock remains an attractive buy.

Foram Chheda, CMT, and the founder of ChartAnalytics.co.in observed that NTPC has broken out from its short-term resistance level of ₹314 level. The breakout has been backed by an increase in volume which supports the bullish trend.

“The stock has been in a formation of higher tops-higher bottoms and remains above important moving averages of 50-day, 100-day and 200-day, indicating the underlying trend to be bullish,” said Chheda. 

"PSAR continues to remain in buy mode. Thus, the price breakout from resistance, increase in volume and overall bullish trend make the stock attractive to buy near ₹316 level for a potential up-move close to 6 per cent in the near term. Any price move below ₹309 can be considered to move out of the stock," Chheda said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.