Maharatna Company Sets Record Date For Rs 3/Share Final Dividend For FY23

NTPC is a large power company which recorded a market cap of Rs 1,87,097.17 Cr during Thursday's closing session. With a total installed capacity of 72,304 MW (including joint ventures), NTPC is India's largest power supplier. By 2032, it aims to reach up to 130 GW in capacity. The NTPC, which acquired its status as a Maharatna corporation in May 2010, has proposed a final dividend of Rs 3 per share for FY23, for the purpose of the same the record date has been made public.

NTPC Dividend

"Pursuant to the Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation of disclosure dated 19th May 2023, it is hereby informed that the Company has fixed Friday. 11th August 2023 as Record date for the purpose of ascertaining the entitlement of Members for the Final Dividend of Rs. 3.00/- (Rupees Three only) per share (on the face value of Rs. 10/- each) on the equity shares of the Company for the financial year 2022-23 as recommended by the Board of Directors of the Company in their meeting held on 19th May 2023. If the final dividend, as recommended by the Board of Directors, is approved at the ensuing Annual General Meeting, payment of such dividend, subject to deduction of tax at source, will be made on or after 12th September 2023," said NTPC in a stock exchange filing today.

NTPC has announced an equity dividend of 72.50% at a face value of Rs 10 or Rs 7.25 per share for the financial year ended March 2023. This generates a dividend yield of 3.76% at the current share price of Rs 192.95. The company has routinely issued dividends for the past five years and has a strong dividend track record. Since February 25, 2005, NTPC Ltd. has issued 38 dividends, according to statistics from Trendlyne.

NTPC Financials

For the quarter ended in March 2023, NTPC's consolidated net profit dropped 6% to Rs 4,871 crore from Rs 5,199 crore in the same period of FY22. In Q4FY23, revenue from operations grew by 19% to Rs 44,253 crore from Rs 37,085 crore in Q4FY22. For the March 2023 quarter, the firm recorded EBITDA of Rs 11,942 crore with margins of 26.9%. In the fourth quarter of FY23, the company's expenses climbed 22% to Rs 39,018 crore from Rs 31,887 crore in the same quarter of FY22.

From the previous year's total of Rs 16,960.29 crore, the consolidated net profit for fiscal 2022-23 rose to Rs 17,121.35 crore. On the other hand, revenue for FY23 climbed by 33% to Rs 1.76 lakh crore compared to Rs 1.32 lakh crore in revenue for FY22. The overall income of the firm climbed from Rs 1,34,994.31 crore in 2021-2022 to Rs 1,77,977.17 crore in 12MFY23.

NTPC is yet to declare its Q1FY24 results.

NTPC Share Price Target

On Thursday, the shares of NTPC closed on the BSE at Rs 192.95 apiece up by 0.21% from the previous close of Rs 192.55. The stock made a 52-week-high of Rs 197.75 on (07/07/2023) and a 52-week-low of Rs 147.30 on (25/07/2022). During Q1FY24, the company recorded a promoter shareholding of 51.10%, FIIs stake of 15.80%, DIIs stake of 30.20%, Govt stake of 0.10% and public stake of 2.79%.

Nirav Karkera, Head of Research, Fisdom said, " At a macro level, India is committed to a transition towards clean energy. Such transition is expected to lead to a series of re-rating in the power industry. Among others, NTPC seems to be positioned well on the right side of this development. Lower finance costs and a healthy balance sheet is a key asset to NTPCs growth aspirations. NTPC is clearly attempting to add capacity at a relatively aggressive pace and alongside increase share of green capacity therein.

The company has clearly expressed to steer most new projects towards brownfield opportunities. One can expect the company to grow on account of robust capacity expansion plans and positive placement to benefit from sectoral tailwinds. Among notable recent developments, Goldman Sach's initiation of coverage on the company with buy ratings have buoyed investor confidence to quite an extent.

NTPC, on the weekly scale, has witnessed a bullish ascending triangle pattern breakout and post that prices are consolidating above the upper band of the pattern while maintaining its bullish status. While observing the momentum oscillator RSI (14) in the lower panel of the above chart suggests the oscillator has taken support near 50 levels in the past couple of occasions and is presently reading a bullish range shift zone. The 21 EMA which is placed at 180 levels could act as an intermediate support for the prices and the sustainable break above 198 levels may bring fresh buying towards 210 - 215 levels."

Deven Mehata, Derivative Analyst at Choice Broking said, "Recently, NTPC, which is presently trading at 192.90, demonstrated a major range breakout after correcting up to the price's strong support level of 185. The stock price has successfully maintained its position above the important level of 189.20, which is also its 20 Day EMA levels, as the breakout was verified with significant trading volumes above 188.70 levels. The expansion of the Bollinger Bands, which coincides with the breakout trade and suggests probable price volatility, adds to the stock's bullish thesis."

"The Relative Strength Index (RSI) indicator is at 60 right now, indicating a bullish momentum in the price movement of the stock and a good market mood. Additionally, the stock is displaying a good technical position by trading above all of its significant moving averages, including 20, 50 & 200 Day EMA. In light of the technical analysis presented above, NTPC seems like a compelling purchase opportunity. Our forecast points to 200-205 as probable price goals. But it's important to keep an eye on things, and if the price drops below 188.70, it would invalidate our predictions and the trade would need to be reevaluated," said Deven Mehata.

Disclaimer

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