NTPC stock powers ahead on improving demand, value unlocking in renewables

Expanding capacities, rising volumes and expectations of higher valuation for its renewables subsidiary have boosted sentiment

A surge in the share price of NTPC brings a focus to the power sector and to renewables. The PSU utility has decent 2021-22 results, and it figures to gain volumes in 2022-23 since power demand is directly correlated to economic activity, which is expected to continue recovering. Apart from this general consideration, a recent deal where Tata Power sold an equity stake at record valuations in its renewables subsidiary has indicated that NTPC could receive similarly high valuations in its renewables play.

NTPC ended the fiscal with 69 Gw of capacity (consolidated) adding 3.3 Gw (net) commercial capacity (standalone capacity