Business Today

NTPC stock closes higher on purchase of thermal power station, release of draft tariff norms

The stock closed 1.67% higher at 146.05 compared with previous close of 143.65 on the BSE. The stock closed below the 50 day and 200 day moving average 148.49 and 158.24, respectively. It opened with a gain of 2.33% at 147 level on the BSE.

twitter-logo BusinessToday.In        Last Updated: December 17, 2018  | 17:01 IST
NTPC stock closes higher on purchase of thermal power station, release of draft tariff norms

The stock of state-run power producer NTPC closed higher today after the firm said it has acquired the 720 MW Barauni Thermal Power Station from Bihar State Power Generation Company. Separately, brokerage Jefferies raised the target price of the stock to Rs 210 from Rs 143.50 after the release of draft tariff regulations.

The stock closed 1.67% higher at 146.05 compared with previous close of 143.65 on the BSE. The stock closed below the 50 day and 200 day moving average 148.49 and 158.24, respectively. It opened with a gain of 2.33% at 147 level on the BSE.

The large cap stock has been gaining for the last five days and has risen 7.15% during the period.

The stock touched an intraday high of Rs 150.95 (a gain of 5.08%).

It has lost 17.58% since the beginning of this year and fallen 17.60 percent during the last one year.

25 of 28 brokerages rate the stock "buy" or 'outperform' and three "hold", according to analysts' recommendations tracked by Reuters.

The coal-based power station, which has two units of 110 MW each and two units of 250 MW each under construction, is located in Begusarai district of Bihar.

"The units of the power station will be progressively put under commercial operation," NTPC said.

Jefferies said in a note the Central Electricity Regulatory Commission (CERC), in its draft, allowed energy charges per unit of power to be calculated with a variation of 85 kilocalorie to billing on actual gross calorific value of coal received, giving NTPC the benefit of about 2.7% on its coal cost

"With the regulation overhang behind us, we think NTPC should see a reversal of the recent correction" , said Jefferies maintaining buy position on the stock.

The BSE Power index closed 1.31% higher at 1961 level.

Meanwhile, the Sensex closed 307 points higher at 36,270 and Nifty gained 83 points to 10,888 level.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close