NTPC shares in news as firm inks agreement with UP power utility

Shares of state-owned NTPC Ltd are in news today after the power producer said it has inked a supplementary joint venture agreement with UP Rajya Vidyut Utpadan Nigam (UPRVUNL).

NTPC stock ended 1.88% higher at Rs 342.25 on Monday. NTPC shares have gained 95.29 per cent in one year and risen 39.32 per cent in six months. Market cap of NTPC rose to Rs 3.31 lakh crore on BSE. Total 3.99 lakh shares of the firm changed hands amounting to a turnover of Rs 13.59 crore.

The stock reached an all-time high of Rs 360.35 on March 6, 2024 and fell to a 52-week low of Rs 166.65 on April 20, 2023.  

In terms of technicals, the relative strength index (RSI) of  NTPC stock stands at 59.2, signaling it's neither trading in the overbought nor in the oversold zone. The stock has a beta of 0.8 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. 

“This SJVA Amendment-II will form an integral part of the joint venture agreement (JVA) dated February 28, 2008, and the SJVA Amendment-I dated September 13, 2023. The SJVA Amendment-II has been signed to provide existing UPRVUNL land to the joint venture company, MUNPL, for the Obra-D (2X800 MW) and Anpara-E (2X800 MW) projects on a lease basis at a nominal rate of Re 1 per acre per year, aiming to reduce power tariffs,” said NTPC in a communication to bourses.

On March 31, the state-owned power firm said it recorded an all-time high annual electricity generation of 422 billion units in 2023-24 rising nearly 6 per cent over 2022-23.

During 2023-24, the NTPC coal stations recorded a plant load factor (PLF, or capacity utilisation) of 77 per cent. The company had on September 1, 2023 recorded the highest-ever single-day generation of 1,428 million units.