NTPC Green shares reverse losses as stock jumps 6% today; here's why

NTPC Green Energy Ltd shares rebounded in Friday's trade after witnessing sharp cuts in the previous session. The recently-listed stock surged 5.79 per cent to hit a day high of Rs 133.35. NTPC Green's one-month lock-in period for its anchor investors expired yesterday.

Today's sharp rise in the share price came after the power generation firm announced an update on its wholly-owned subsidiary NTPC Renewable Energy Ltd's (NTPC REL's) Gujarat solar PV project.

"We wish to inform you that on the basis of certificate dated 26.12.2024 issued by Gujarat Energy Development Agency, first part capacity of 37.5 MW out of 200 MW Gujarat Solar PV Project in Sadla, Gujarat awarded under GUVNL/500 MW/Solar (Phase XI) tender, of NTPC Renewable Energy Ltd (a wholly-owned subsidiary of NTPC Green Energy Ltd) is declared on Commercial Operation w.e.f. 21.12.2024," it stated in a BSE filing.

Earlier this month, NTPC REL's second part capacity of 30 MW out of 150 MW Gujarat Solar PV Project, Mesanka, Gujarat was declared eligible for commercial operations. Recently, NTPC REL has secured a 500 MW solar power contract in an SECI auction.

NTPC's diversification into green energy and its foray into nuclear power will be positive for the company over the medium- to short-term, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. He added that investors could add NTPC Green on dips as the stock has potential to perform. The firm is a wholly-owned subsidiary of state-run NTPC Ltd.

On technical setup, the stock looked strong on charts, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. "It can move towards Rs 140 level in the near term. Keep stop loss placed at Rs 128," he suggested.

In contrast, Kushal Gandhi, Technical Analyst at StoxBox advised against purchasing the stock at the current levels.

NTPC Green is a renewable energy company that focuses on undertaking projects via organic and inorganic routes. The company, incorporated in April 2022, had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects across six states as of August 31, 2024.

As of September 2024, promoters held an 89.01 per cent stake in the renewable energy company.