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Last Updated : Jul 12, 2019 10:32 AM IST | Source: Moneycontrol.com

NTPC gains after CLSA retains 'buy'; sees 22% upside on potential SJVN merger

SJVN could double hydro capacity with its pipeline of 2.7 GW of regulated hydro assets, said CLSA which like NTPC's merger & acquisition (M&A) strategy that is focused on acquiring operating regulated assets.

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NTPC shares gained more than a percent intraday on July 12 after global brokerage CLSA retained its buy call with a target price at Rs 157, implying 22 percent upside on potential SJVN merger.

"SJVN acquisition if happens is value-accretive M&A and better energy mix with renewables," the research firm said, adding acquisition would help NTPC triple its hydro capacity and double the share of renewables.

SJVN could double hydro capacity with its pipeline of 2.7 GW of regulated hydro assets, said CLSA which like NTPC's merger & acquisition (M&A) strategy that is focused on acquiring operating regulated assets.

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If the deal happens at current market price to 20 percent premium, it should be EPS-accretive, the brokerage said, adding NTPC is getting closer to lower under-recovery and has robust renewable energy growth.

The stock was quoting at Rs 130.40, up Rs 1.40, or 1.09 percent on the BSE at 948 hours IST.

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First Published on Jul 12, 2019 10:32 am
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