Shares of NTPC hit record high for the third straight session today amid a rally in the broader market today. Shares of NTPC rose to a record high of Rs 437.90 today against the previous close of Rs 436.60 on BSE. In the previous two sessions, NTPC stock had hit record highs of Rs 437.15 and Rs 437.90, respectively on BSE. The positive sentiment in the stock is supported by a report, which said the power ministry has finalised a National Electricity Plan (NEP) for Central and State transmission systems, with a massive investment of Rs 9.15 lakh crore. The plan comes in the wake of growing energy demand, targeting a peak demand of 458 gigawatts (GW) by 2032.
After hitting record high in the current session, the NTPC stock was trading 1 percent lower at Rs 432.25 at 11: 40 am today.
NTPC's market cap fell to Rs 4.19 crore. Total 3.48 lakh shares changed hands amounting to a turnover of Rs 15.10 crore on BSE.
In terms of technicals, the relative strength index (RSI) of NTPC stands at 68.5, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 150 day moving averages.
The stock has a high beta of 1.5, indicating high volatility in a year.
The stock has risen 39.55 per cent this year and gained 80% in a year. It rose 247% in the last three years.
Motilal Oswal has assigned a price target of Rs 450 to the NTPC stock.
"We are cautiously optimistic on thermal, NTPC, excluding NGEL, is trading at FY27E PB of 1.6 times, which we view as reasonable (and not inexpensive). NTPC’s FY27E dividend yield at 2.6 per cent compares poorly with Power Grid's 3.5 per cent," said the brokerage.
Analysts at StoxBox have recommended a target price of Rs 439 and a stop loss of Rs 395.
"NTPC is India's largest power producer and holds a significant share of the country's power capacity, positioning it well to benefit from increasing demand. The company plans to increase its capacity to over 130 GW by 2032 and has shown strong Q1 FY25 results, with an 11 per cent year-over-year PAT growth to Rs 4,511 crore. NTPC's focus on renewable energy and low-cost debt further enhances its investment appeal," the brokerage said.
ICICI Securities has assigned a price target of Rs 495 to the NTPC stock.
"We estimate revenue of Rs 117bn, EBITDA of Rs 95–100 billion for its portfolio. EV to EBITDA remains the best valuation metric to analyse NGEL’s RE portfolio. Retain BUY and price target of Rs 495 on NTPC," said ICICI Securities.