Hold NTPC, target price at Rs 175: Agarwal

According to Rajesh Agarwal, Head of Research at Eastern Financiers, one should continue to hold NTPC with a target price of Rs 175.

Agarwal told CNBC-TV18, "For NTPC, wait till Rs 175 level because it is one of the largest power generators in our country with around 39.7 gigawatt of power capacity and contributes almost 30 percent of the country’s energy requirements. They have huge capacity expansion plans and with tariff hikes, FSA almost in place and other things, it is just a matter of time when the company starts giving better numbers." He further added, "Even at this point of time the nine month numbers were pretty good with around 25 percent growth in bottom-line. One can continue holding this stock with a view of Rs 175 in next six-nine months. At current valuation it is trading at a P/E of 13 which is quite justified considering the fact that the kind of capacity it has one should continue holding with a target of Rs 175."