Shares of NTPC Green Energy (NGEL) were locked in the 10 per cent upper circuit at Rs 121 on the BSE in Tuesday’s intra-day trades amid heavy volumes. In the past four days, the stock price of the power generation company had declined 12 per cent. It had corrected 30 per cent from its 52-week high of Rs 155.30 touched on December 4, 2024.
The stock price of NGEL hit a new low of Rs 109.40 in Monday’s intra-day trade and was 1 per cent shy from its issue price of Rs 108 per share. The company made its stock market debut on November 27, 2024.
Till 03:22 PM; a combined 19.16 million equity shares changed hands and there were pending buy orders for 3.19 million shares on the NSE and BSE.
NGEL, a subsidiary of NTPC, India’s largest integrated energy company with over 76GW of installed capacity, is among the top 10 renewable players in India. NGEL focuses exclusively on renewable energy which includes solar, wind, and solar-wind hybrid power projects.
On January 9, NGEL declared commercial operation date (COD) of second part capacity of 60 MW out of 320 MW Bhainsara Solar PV Project at Jaisalmer in Rajasthan and second part capacity of 50 MW out of 220 MW Shajapur Solar Project (Unit-II) at Shajapur in Madhya Pradesh (MP) of NTPC Renewable Energy (NTPC REL).
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On January 1, NTPC REL, a wholly-owned subsidiary of NGEL, emerged as a successful bidder in the e-reverse auction conducted by Uttar Pradesh Power Corporation Limited (UPPCL). The tender, aimed at the "Selection of Solar Power Developers for Setting up 2000 MW ISTS-connected Solar PV Power Projects in India under Tariff-Based Competitive Bidding," was conducted on January 3, 2025, the company said in an exchange filing.
NTPC REL secured a capacity of 1000 MW at an impressive tariff of Rs. 2.56/kWh. The Letter of Award (LOA) from UPPCL is awaited, it added.
Meanwhile, NTPC is India’s largest power utility, with a 17 per cent share in the country’s installed power capacity having 76GW operational capacity and contributing 24 per cent (422BU) to India’s total electricity generation in FY24. NTPC, along with NGEL, aims to scale renewable capacity 20x to 60GW by FY32F from 3.3GW, with~ 89 per cent EBITDA margin from long-term 25-year power purchase agreements (PPAs), analysts at InCred Equities said in the NTPC note.
NGEL is spearheading the company’s clean energy transformation. India’s aim to expand its renewable energy (RE) capacity to 500GW by 2030F from 192GW in FY24 positions NGEL at the forefront of this transition. As a key beneficiary, NGEL contribute meaningfully to NTPC’s leadership in sustainable power generation.
NGEL, which is among the top 10 renewable players in India, is targeting 60GW of renewable energy capacity by FY32F, accounting for 46 per cent of NTPC’s projected total capacity. NGEL aims to scale operational renewable capacity from 3.3GW as of Sep 2024-end to 6GW by FY25F, 11GW by FY26F, and 19GW by FY27F, with plans to add 8GW annually between FY28F and FY32F. This positions NTPC to capture a significant share of India’s energy transition towards sustainable power generation, the brokerage firm said. It initiated coverage on NTPC with an ADD rating and a SOTP-based target price of Rs 385 as a proxy play on India’s 900GW energy transition. Today, NTPC was trading 4 per cent higher at Rs 310.90 on the BSE. The stock had hit a 52-week high of Rs 448.30 on September 30, 2024, and a 52-week low of Rs 296.55 on January 18, 2024.