NTPC soars 6%, hits new high on strong biz outlook; up 52% so far in CY23

NTPC is looking for opportunities to expand and diversify its business in new areas both domestically and globally by working in close coordination with the Indian and global energy community

Shares of NTPC hit a record high of Rs 251.50 as they rallied 6 per cent on the BSE in Friday's intraday trade, supported by back of heavy volumes, on strong business outlook. Thus far in the calendar year, the stock has zoomed 52 per cent as compared to 7.5 per cent rise in the S&P BSE Sensex.

The stock of the state-owned power generation company has surpassed its previous high of Rs 245.90, touched on September 20, 2023. At 11:12 AM, NTPC was trading 3.5 per cent higher at Rs 246.15 as compared to 0.34 per cent rise in the S&P BSE Sensex. Average trading volumes on the counter jumped 1.7 times today with a combined 21.78 million equity shares of NTPC having changed hands on the NSE and BSE.

NTPC is India's largest power generation company with a total installed capacity of ~73000 MW at the group level as of FY23. NTPC has 17 per cent of total installed capacity in India with 24 per cent generation share. The company's vision is to become a 130 GW+ company by 2032 of which 60 GW would be contributed by renewable energy.

NTPC, on Wednesday, announced that Unit#1 (800 MW) of Telangana STPP, Stage-I (2x800 MW) has begun Commercial Operation w.e.f. Thursday, September 28, 2023. With this, standalone and group commercial capacity of NTPC will become 57,838 MW and 73,824 MW, respectively.

NTPC has an ambitious plan to reach a total installed capacity of 130 GW by 2032. In Renewable Energy (RE) space, the target is to achieve 60 GW by 2032. The present portfolio of RE projects is around 20 GW, out of which 3.2 GW has already been commissioned, while the remaining is under various stages of development.

Further, capacity addition is planned through Ultra Mega Renewable Energy Power Projects (UMREPPs), collaborating with other companies, partnering with State Governments and through competitive bids. To focus on RE business, NTPC has consolidated its RE portfolio in NTPC Green Energy Limited (NGEL).

NTPC said it is looking for opportunities to expand and diversify its business in new areas both domestically and globally by working in close coordination with the Indian and global energy community.

"Given its robust capacity addition programme, NTPC will continue to maintain a diversified customer base and a dominant position in the power sector. In addition to the current installed capacity, the NTPC Group has an under-construction capacity of over 18 GW. Further, it plans to increase its RE capacity to 60 GW by FY2032 (addition of 5-6 GW annually for the next 10 years). Given its robust capacity-addition programme, NTPC will continue to maintain a diversified customer base and a dominant position in the power sector," according to Icra

Meanwhile, analysts at ICICI Securities have 'BUY' rating on NTPC. The brokerage firm values the stock at Rs 300 per share (based on 1.8x FY25 Book Value).

"NTPC has set out an aggressive renewable capacity addition plan to the tune of 16,000 MW over FY24-FY26, which will scale up the green portfolio of the company and lead to rerating of the stock. Per year addition of 4,000-5,000 MW of renewable capacity and strong growth in regulated equity in the conventional thermal portfolio. We estimate EBITDA and PAT to grow at 16.1 per cent, and 16 per cent CAGR,respectively over FY23-25E," they said in a report.