NTPC shares hit record high today: Two factors behind the rally
NTPC shares rose 4.09% to a record high of Rs 318.80 against the previous close of Rs 306.25 on BSE. Earlier, NTPC stock opened higher at Rs 310.60 on BSE.
- Jan 4, 2024,
- Updated Jan 4, 2024 11:12 AM IST
Shares of state-owned NTPC Ltd hit their record high today as the firm proposed to invest Rs 90,000 crore ($10.80 billion) to create 15 gigawatt (GW) renewable energy parks and projects to meet the agricultural sector's power needs in Gujarat .
Meanwhile, Axis Securities has initiated coverage with a BUY rating on the NTPC stock. It has assigned a target price of Rs 345, implying a potential upside of 13% from the current market price.
“We initiate coverage on the stock with a BUY rating and value the company by using a SoTP-based target price of Rs 345 per share. We value the company’s conventional thermal business at 1.8x P/BV on its FY26 consolidated regulated BV. Moreover, we value its renewable energy business at EV/EBITDA of 12x on FY26 EBITDA, which is a premium multiple against the industry average of 9-10x to account for growth tailwinds and evolving RE-RTC optionality,” said the brokerage.
NTPC shares rose 4.09% to a record high of Rs 318.80 against the previous close of Rs 306.25 on BSE. Earlier, NTPC stock opened higher at Rs 310.60 on BSE. NTPC shares have gained 90.48 per cent in one year and risen 63.45 per cent in six months. Market cap of NTPC rose to Rs 3.08 lakh crore on BSE. Total 8 lakh shares of the firm changed hands amounting to a turnover of Rs 25.24 crore.
The stock hit a 52-week low of Rs 162.65 on February 3, 2023.
In terms of technicals, the relative strength index (RSI) of NTPC stock stands at 64, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.3, indicating low volatility in a year. NTPC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The government-owned power generator also proposed a further investment of $8.40 billion in Gujarat for fuel cell electric vehicle mobility, hydrogen blending with natural gas, production of green chemicals such as ammonia and methanol, a Reuters report said.
NTPC inking deals for investment comes ahead of the Vibrant Gujarat Global Summit to be held from January 10, 2024 to January 12, 2024.
The Gujarat government has signed deals worth Rs 7.17 lakh crore with 58 companies ahead of the Summit.
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Shares of state-owned NTPC Ltd hit their record high today as the firm proposed to invest Rs 90,000 crore ($10.80 billion) to create 15 gigawatt (GW) renewable energy parks and projects to meet the agricultural sector's power needs in Gujarat .
Meanwhile, Axis Securities has initiated coverage with a BUY rating on the NTPC stock. It has assigned a target price of Rs 345, implying a potential upside of 13% from the current market price.
“We initiate coverage on the stock with a BUY rating and value the company by using a SoTP-based target price of Rs 345 per share. We value the company’s conventional thermal business at 1.8x P/BV on its FY26 consolidated regulated BV. Moreover, we value its renewable energy business at EV/EBITDA of 12x on FY26 EBITDA, which is a premium multiple against the industry average of 9-10x to account for growth tailwinds and evolving RE-RTC optionality,” said the brokerage.
NTPC shares rose 4.09% to a record high of Rs 318.80 against the previous close of Rs 306.25 on BSE. Earlier, NTPC stock opened higher at Rs 310.60 on BSE. NTPC shares have gained 90.48 per cent in one year and risen 63.45 per cent in six months. Market cap of NTPC rose to Rs 3.08 lakh crore on BSE. Total 8 lakh shares of the firm changed hands amounting to a turnover of Rs 25.24 crore.
The stock hit a 52-week low of Rs 162.65 on February 3, 2023.
In terms of technicals, the relative strength index (RSI) of NTPC stock stands at 64, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.3, indicating low volatility in a year. NTPC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The government-owned power generator also proposed a further investment of $8.40 billion in Gujarat for fuel cell electric vehicle mobility, hydrogen blending with natural gas, production of green chemicals such as ammonia and methanol, a Reuters report said.
NTPC inking deals for investment comes ahead of the Vibrant Gujarat Global Summit to be held from January 10, 2024 to January 12, 2024.
The Gujarat government has signed deals worth Rs 7.17 lakh crore with 58 companies ahead of the Summit.
Also read: Torrent Power shares surge 14% to hit one-year high; here's why
Also read: Top 5 stocks to watch on January 4, 2024: Adani Ports, Vedanta, Torrent Power and more