This power stock turned into multibagger in a year, closed near record high; what’s next?

Shares of state-owned NTPC Ltd have delivered multibagger returns in the last one year. The stock rallied 100% during the period and gained 157% in two years. NTPC stock, which hit a record high of Rs 347.85 on February 21, 2024 closed near that level on Friday.

NTPC shares closed 2.38% higher at Rs 343.45 on Friday. Market cap of the firm stood at Rs 3.33 lakh crore. Total 5.72 lakh shares of the firm changed hands amounting to a turnover of Rs 19.53 crore. 

The stock fell to a 52-week low of Rs 166.65 on April 20, 2023.  The stock has a beta of 0.6, indicating low volatility in a year. 

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has overall indicated a rising trend on the daily chart and recently with some profit booking seen has slipped from the peak zone of Rs 348 levels with near-term support visible near Rs 328 zone of the long-term trendline zone where it can consolidate and anticipate for further upward move for next higher targets of Rs 358 and Rs 372 levels, respectively. At the same time, a decisive breach below the significant 50EMA zone of Rs 317 shall weaken the bias overall and thereafter, can expect for further slide."

Abhijeet from Tips2trades said, "NTPC is sideways to bearish on the Daily charts with strong resistance at 348. A daily close below support of 328 could lead to 305 in the near term."

NTPC reported a 7% year-on-year growth in its consolidated net profit to Rs 5,209 crore in Q3 against Rs 4,854 crore a year ago. On a sequential basis, net profit climbed 10% from Rs 4,726 crore posted in the preceding September quarter.

Revenue from operations fell 4% year-on-year to Rs 42,820 crore in the last quarter against Rs 44,602 crore in the corresponding period of last year.

In terms of technicals, the relative strength index (RSI) of  NTPC stock stands at 56.2, signaling it's neither trading in the overbought nor in the oversold zone. NTPC shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.