NTPC shares hover near 52-week high; time to buy, sell or hold?

Shares of NTPC Ltd rose 2.86 per cent on Wednesday to settle at Rs 192.55 against their previous close of Rs 187.20. At today's closing price, the stock was just 2.63 per cent away from its 52-week high of Rs 197.75, a level seen on July 7, 2023. It has gained 30.72 per cent from its one-year low price of Rs 147.30, hit on July 25 last year.

The company has recently completed trial operation, by 660 MW capacity unit, of Barh Super Thermal Power Project in Bihar. With this, the company said installed capacity of NTPC and NTPC Group has become 57,038 MW and 73,024 MW, respectively.

"NTPC is expected to report net sales of Rs 44,600 crore in Q1 FY24, up 3 per cent year-on-year (YoY). EBITDA is estimated at Rs 12,900 crore, up 19 per cent YoY. It is expected to benefit from lower raw material cost due to reduction in use of imported coal as well as moderation in expenses," JM Financial said.

The state-run power firm, in an exchange filing, said, "A meeting of the Board of Directors of the company is scheduled to be held on July 29, 2023 to, inter-alia, consider, approve and take on record the unaudited financial results for the quarter ended on June 30, 2023 (Q1 FY24)."

On technical setup, the counter's 14-day relative strength index (RSI) came at 60. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 10.58 against a price-to-book (P/B) value of 1.31. The scrip has a one-year beta of 0.65, indicating low volatility.

Analysts largely suggested that the stock looked 'stable'.

Milan Sharma, Founder at 35North Ventures, said, "NTPC is a stable counter and the reason for this stability is the steadiness in its financial performance seen quarter on quarter (QoQ). The sudden jump in NTPC stock is on account of Goldman Sachs coverage initiation with a target of around Rs 240. The company is poised to grow as the country is moving towards clean energy. With ROE (Return on equity) of around 13 per cent, it is definitely a good buy for long term."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has overall maintained a positive trend gradually indicating rising channel pattern on the daily charts. With support at Rs 185 level, it has gained momentum to reach Rs 194 and has got resistance near Rs 198 zone. The RSI has indicated a trend reversal and a further rise is expected with the bias turning strong."

AR Ramachandran from Tips2trades said, "NTPC is slightly bullish on the daily charts with strong resistance at Rs 198. Investors can hold buy positions with stop loss at support of Rs 184. Next resistance will be at Rs 211."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Going forward, Rs 188-190 would be credible a support zone and we may see some bounce till Rs 205."

VLA Ambala, Research Analyst at Stock Market Today, said, "Those who want to take advantage and looking for a good swing trading opportunity, they can consider NTPC as a good bet. Expected targets are between Rs 200 and Rs 250 with a stop loss placed at Rs 183. This stop loss level should act as a support for this stock in the near future."

Meanwhile, Indian equity benchmarks extended their record run today amid a volatile session. The 30-share BSE Sensex pack gained 302 points or 0.45 per cent to settle at 67,097, while the broader NSE Nifty index added 84 points or 0.42 per cent to end the day at 19,833.

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