NTPC jumps 5%, hits all-time high on strong Q1 results, brokerage target upgrades

So far this year, the stock of this power generation player jumped over 31 percent

Shares of NTPC rallied 5 percent to touch an all-time high of Rs 412.7 per share on July 30 after it clocked strong April-June quarter (Q1FY25) results. Brokerages largely remain bullish on the counter as they expect thermal and nuclear power businesses to drive further growth ahead.

Jefferies maintained its 'buy' call on NTPC and raised the target price to Rs 485 from Rs 445 apiece, expecting execution of orders to pick up pace. They believe that the company's earnings visibility has improved with thermal, wherein 9.6 gigawatts (GW) is under construction and 15.2 GW is to be awarded.

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In addition, nuclear power is also an emerging opportunity, said Jefferies analysts, eyeing further re-rating as execution ramps up.

Analysts at JM Financial also reiterated their 'buy' rating on NTPC and assigned a target price of Rs 451 per share. "Given the revival in thermal capex and momentum in new growth areas such as nuclear power and coal mining, we maintain a bullish stance on the stock," they added.

Conversely, Kotak Institutional Equities maintained their 'sell' rating and put out a target price of Rs 290 apiece. "We believe that NTPC’s current market price sufficiently captures all its growth aspirations while disregarding the risks of lower-than-expected returns from renewable assets. We assign a multiple of 1.5x for the regulated return business, and 1.2x for the renewable business," the brokerage firm highlighted.

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NTPC recorded  13.5 percent year-on-year jump in its revenue at Rs 44,419 crore for Q1FY25, while profit rose 11 percent YoY to Rs 4,511 crore. Its EBITDA, or earnings before interest, taxes, depreciation, and amortisation went up 9.5 percent YoY to Rs 12,466 crore, but margins fell by 100 basis points to 28 percent.

So far this year, the stock of this power generation player jumped over 31 percent, outpacing benchmark Nifty 50's 14 percent rise.