BackNTPC share price snaps two-day losing streak, hits all-time high; here's why
NTPC share price jumps nearly 6% to all-time high on news of power facility starting operation. ICICI Direct Research maintains 'buy' rating with a target price of ₹300.
PremiumNTPC share price jumped nearly 6% on Friday's trading session to touch a all-time high of ₹251.50 on BSE after the 800-MW power facility for NTPC started operation, and brokerage ICICI Direct Research maintained a 'buy' rating for the NTPC stock with a target price of ₹300 and saw potential upside of 24% from Wednesday's closing price of ₹240. NTPC shares today opened at intraday low of ₹239.20 apiece. NTPC shares snapped its 2-day losing streak on Friday's session.
On October 1, Prime Minister Narendra Modi will formally dedicate the ₹6,000 crore Ramagundam facility to the country, said moneycontrol in its news report. A 2,600 megawatt (MW) Super thermal power station, NTPC Ramagundam is a unit of National Thermal Power Corporation and is located at Ramagundam, Peddapalli district, Telangana, India. Currently, it is South India's biggest power plant.
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“Unit#1 (800 MW) of Telangana STPP, Stage-I (2x800 MW) is declared on Commercial Operation w.e.f. 00:00 Hrs. of 28.09.2023. With this, standalone and group commercial capacity of NTPC will become 57838 MW and 73824 MW respectively," the company said in an exchange filing on Wednesday.
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Brokerage, ICICI Direct Research in its report said that NTPC has set out an ambitious plan to add renewable capacity totalling 16000 MW over the course of FY24–FY26, which will expand the company's green portfolio and result in a rerating of the stock.
“Per year addition of 4000-5000 MW of renewable capacity and strong growth in regulated equity in the conventional thermal portfolio We estimate EBITDA and PAT to grow at 16.1%, and 16% CAGR respectively over FY23-25E. We maintain our BUY rating on NTPC. We value the stock at ₹300 per share (based on 1.8x FY25 Book Value)," the brokerage said in its report.
On the technical front, as per trendlyne data, NTPC stock price rose 55.8% and outperformed its sector by 38.8% in the past year.
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According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, NTPC stock price have gained significant momentum following a robust opening. Currently, we observe a breakout from the recent consolidation range, signalling a return to its primary upward trend.
“We anticipate this upward trajectory to persist in the short term, potentially reaching a target of 260. Any potential decline to the range of 243 to 240 should be considered as a favourable opportunity to buy," said Bhosale.
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