This state-run power generation large-cap has zoomed 102% so far in FY24

NTPC rallied 4 per cent to hit a fresh high of Rs 354 ahead of the foundation stone ceremony for its various projects worth Rs 30,023 crore by PM Modi today

Shares of NTPC rallied 4 per cent to hit a fresh high of Rs 354 on the BSE in Monday’s intra-day trade. The rally comes as Prime Minister Narendra Modi will lay the foundation stone today for the power company's various projects worth Rs 30,023 crore. 

Thus far in the financial year 2023-24 (FY24), the stock price of NTPC has more than doubled or zoomed 102 per cent.

At 09:39 am; NTPC was trading 2.5 per cent higher at Rs 350.50 as compared to a 0.07 per cent decline in the S&P BSE Sensex.

The counter saw huge trading volumes with a combined 9.2 million equity shares having changed hands on the NSE and BSE.

PM Modi will lay the foundation stone of Unit -2 (800 MW) of NTPC's Telangana Super Thermal Power Project (Stage-I) located in the Peddapalli district of Telangana.

With an investment of Rs 8,007 crore, this project utilises ultra-supercritical technology, ensuring optimal power generation efficiency while significantly reducing CO2 emissions, said a govt release.

Meanwhile, in an exchange filing, NTPC on Sunday announced that its board has given investment approval for Singrauli Super Thermal Power Project, Stage-III (2x800 MW) at an appraised current estimated cost of Rs 17,195.31 crore.

On Friday, March 1, NTPC said that based on achievement of approved norms and due approvals, Unit-2 of 660 MW capacity of North Karanpura Super Thermal Power Project (3 x 660 MW) has successfully completed trial operation and consequently included in the installed capacity of the company.

With this, the total installed capacity of NTPC on standalone and group basis has become 59,298 MW and 75,418 MW, respectively.

NTPC is India’s largest integrated power utility with a total installed capacity, including JVs and subsidiaries, of approximately 74 GW.

As part of increasing its renewable energy portfolio, “NTPC Green Energy Limited” (NGEL), a fully owned subsidiary, has been formed, which will take up renewable energy parks and projects, including businesses across green hydrogen, energy storage technologies and round-the-clock renewable energy.

NTPC seems well placed, given it is the leading thermal utility with accelerated coal-based expansion targets. It has several opportunities to invest in brownfield expansion, where the private sector is reluctant to invest, according to analysts.

"Aggressive renewable capacity addition plan to the tune of 16000 MW over FY24-FY26 will scale up the green portfolio of the company and lead to rerating of the stock", said analysts at ICICI Securities.

The brokerage firm has a ‘buy’ rating on NTPC with a target price of Rs 400 per share.