NTPC stock gains on extension of joint development pact with UP state govt utility

Brokerage firm Sharekhan has given a ‘buy’ rating to the NTPC stock with a target price of Rs 260 per share

NTPC stock gained in early trade on September 15, after the signing of a supplementary joint venture agreement with UP state government utility.

At 12:32 pm the NTPC stock was trading marginally higher, up 0.12 percent at Rs 238.12 on NSE.

India’s largest PSU power generation company NTPC signed a supplementary joint venture agreement to an earlier agreement forged with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) in February 2008. According to a corporate filing dated September 14, NTPC and UPRVUNL signed the JV agreement in 2008 for the formation of a joint venture company Meja Urja Nigam (MUNPL).

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The supplementary joint venture agreement has been signed to take up joint development of Meja Stage-II (2X660 MW), Obra 'D' Thermal Power (2X800 MW) & Anpara 'E' Thermal Power Plant (2X800 MW) projects, subject to techno commercial viability and necessary clearance and power purchase agreement (PPA) in place.

Brokerage firm Sharekhan has given a ‘buy’ rating to the NTPC stock with a target price of Rs 260 per share in a report dated August 24, 2023. The report added: “Anticipation of a rise in peak power deficit could drive re-rating of NTPC’s core thermal power business. Thus, NTPC’s plan to add commercial thermal power capacities of ~10 GW over three years seems to be a step in the right direction.”

NTPC stock has given a return of 33.73 percent over the last six months. The benchmark Nifty 50 has given a return of 18.46 percent over the same duration.