NTPC snaps 4-day winning streak, declines 3% on profit-taking

Shares of state-owned NTPC snapped a four-day winning run and slipped nearly 3 per cent to an intra-day low of Rs 101.60 even as the firm commissioned 5 MW solar capacity at Auraiya plant in Uttar Pradesh (UP). In the last four trading sessions, the stock has risen nearly 10 per cent.

The stock opened higher and touched the day's high of Rs 106.3 after the firm announced commissioning of 5 mega watt (MW) solar capacity at a project in Auraiya, UP on Saturday. However, as the session progressed, the shares succumbed to profit-taking and were trading at Rs 102.60, down 1.63 per cent at around 10.30 am. At the same time, the BSE Sensex was down 0.68 per cent down at 50,545.71.

"We wish to inform that consequent upon successful commissioning, 5 MW last part capacity for 20 MW Auraiya Solar PV Project at Auraiya has been declared on commercial operation w.e.f (with effect from) 00:00 hours of 20.02.202," NTPC said in a BSE filing. READ HERE

With this, the total installed capacity of NTPC and NTPC group has become 52,115 MW and 64,880 MW, respectively.

Earlier this month, the company reported a net profit of Rs 3,315 crore on a standalone basis for the quarter ended December 31, 2020 (Q3FY21), up 11 per cent year-on-year. The net profit was Rs 2,995 crore during the same period a year earlier. Sequentially, profit declined 5 per cent.

The company had also announced an interim dividend of Rs 3 per share. 

Following the results announcement, brokerage ICICI Direct said the company plans to focus on augmenting renewables capacity in a profitable and aggressive manner in the future. 

"We would still wait for some time to see the execution capability on the renewable side before turning into buyers. Hence, we believe the stock will consolidate in a range. Till then, we maintain a HOLD rating with a target price of Rs 105 (Rs 88 earlier), valued at 0.75x FY23E book value," said ICICI Direct's research analyst Chirag J Shah.