Rs 7.50/Share Dividend, 1:5 Bonus, PE 18.70: Buy Maharatna CPSE, TP Rs 425: Sharekhan

Leading brokerage firm Sharekhan has assigned buy call to NTPC Ltd share with target price of Rs 425 per share. Current market price of NTPC share BSE is Rs 350.90 apiece. The Maharatna CPSE has a market capitalisation of Rs 3,40,256.01 crore. NTPC has a PE of 18.70 and EPS (TTM) of 4.71. NTPC shares offered return of 110% in last 1-year and soared 47% in last 6-months. Life Insurance Corporation of India (LIC) has stake of 4.55% in NTPC. More details below:

NTPC Green Energy Limited Inks MoU with Indus Towers Limited: According to the BSE filing of the company dated April 19, "wholly owned subsidiary of NTPC Limited, NTPC Green Energy Limited (NGEL) and Indus Towers Limited (ITL) on April 19 signed a Memorandum of Understanding (MoU), to address the need for pacing green energy objectives and the GOI's efforts towards carbon neutral economy. The MoU is to explore a joint development of grid connected Renewable Energy based Power Projects including Solar, Wind, Energy storage etc. and/or solutions thereof. Indus Towers Limited aims to expand its renewable energy portfolio in a phased manner to Giga Watt scale capacity, for its business operations spread across the country, as a part of its Net Zero commitments."

NTPC Share Performance & Return: The 52-week high price of NTPC Ltd share on BSE is Rs 374.50 per share (12/04/2024) and 52-week low price is Rs 166.65 per share (20/04/2023), respectively. NTPC shares declined 2.97% in last 1-week indicating traders have "buy on the dips" opportunity on the stock. NTPC shares offered return of 254% in last 3-years and gained 159% in last 5-years.

NTPC stock has a PE or price-to-earnings ratio of 18.70. PE is a instant method to view if a stock is undervalued or overvalued. Therefore, lower the P/E ratio, the better it is for business and potential investors.

Should You Buy NTPC Share? Sharekhan has recommended buy call with target price of Rs 425 per share. The analyst said, "NTPC is our top pick in the power sector given its strong earnings growth visibility (expect 11% PAT CAGR over FY23-26E; RoE of 14%), reasonable valuation of 2x FY26E P/BV considering discount versus private power companies and a healthy dividend yield of 3%. NTPC is play on improving capex outlook for thermal power capacities and high growth in RE business. We maintain our Buy rating on NTPC with a revised PT of Rs. 425."

NTPC Bonus Share History: NTPC offered single bonus issue since March 19, 2019. The last Bonus that NTPC Ltd. anoununced was in the ratio 1:5 with ex-date of March 19, 2019.

NTPC Dividend History: NTPC announced 41 dividends since February 25, 2005. In last 12 months, NTPC announced an equity dividend amounting to Rs 7.50 per share. At the current share price of Rs 350.90/share, NTPC offers a dividend yield of 2.14%.

NTPC Technical: The PSU's score is 70.28 indicating it is technically strong. Stocks with score above 70 are considered as technically strong. RSI is 54.7, RSI below 30 is considered oversold and above 70 overbought. MACD (6.5) is above its center and signal line, this is a bullish indicator. Number of FII/FPI investors increased from 831 to 875 in Mar 2024 quarter. Number of MF schemes increased from 38 to 39 in Mar 2024 quarter, according to Trendlyne.

LIC Stake In NTPC: Life Insurance Corporation Of India (LIC) has 4.55% stake in NTPC Ltd with 441,227,974 shares of the company as of March 2024 quarter.

NTPC Q3 Results: The company's revenue from operations for December 2023 quarter came at Rs 42,820.38 crore, down 3.9% from Rs 44,601.84 crore declared in the similar quarter of the last fiscal. NTPC's EBITDA arrived at Rs 12,116.42 crore, down 18% as against Rs 14,864.96 crore reported during the similar quarter last year. EBITDA margin fell by 5 percentage points to 28% from 33%. NTPC registered its gross power generation of 89.467 billion units (BU) during the quarter, up 13.76% than 78.646 BUs in the similar period of the previous year.

NTPC About: Established in 1975, NTPC is steering ahead to be India's largest integrated power company and targets to become a 130 GW firm by 2032. NTPC has comprehensive Rehabilitation & Resettlement and CSR policies well integrated with its core business of setting up power projects and generating electricity. NTPC became a Maharatna company in May 2010.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.