NTPC shares on a roll! Here's why

Shares of the country's largest power producer NTPC jumped over 5 per cent after the company said that it clocked the highest ever annual electricity generation of 360 billion units along with its joint ventures and subsidiaries in 2021-22, registering a growth of 14.6 per cent compared to the previous year.

The stock opened 1.6 per cent higher at Rs 137 against the previous close of Rs 134.95. With a market capitalisation of more than Rs 1,36,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The power giant also recorded the maximum single-day generation of 1,215.68 MU (Group) and 1,013.45 MU (NTPC) during 2021-22.

"NTPC, India's largest integrated power generating company, delivered a phenomenal performance with highest-ever annual group generation of 360 BU, a growth of 14.6 per cent compared to previous year," a company statement said.

The coal-based plants recorded a PLF (Plant Load Factor), or capacity utilisation, of 70.7 per cent with an availability factor of 88.8 per cent.

On a standalone basis, the NTPC generated 299 BU in 2021-22, an increase of 10.4 per cent over the previous year. BU refers to Billion Units and MU stands for Million Units.

The total installed capacity of NTPC Group increased by 4.7 per cent to 68,940 MW with 3,130 MW of capacity addition in the fiscal year under review. On a standalone basis, the NTPC's capacity increased by 4.1 per cent to 54,575 MW.

The company also informed that it is increasing its renewable portfolio, and has received approval from the Ministry of New and Renewable Energy (MNRE) for setting up of one of the largest 4,750 MW renewable energy parks in Rann of Kutch, Gujarat.

Recently, Damodar Valley Corporation (DVC) also entered into a joint venture agreement with NTPC Renewable Energy Ltd, a fully owned subsidiary of NTPC Limited, for renewable power projects in its command area.

According to MarketsMojo, the stock is trading at a discount compared to its average historical valuation and has a Very Attractive valuation. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV.

(With inputs from PTI)