NTPC share price rises over 2% as brokerages maintain buy call

NTPC share price rose over 2 percent in early trade on August 18 after brokerages maintained a buy rating on the stock after the company reported its June quarter numbers last week.

On August 14, the company reported a 5.9 percent year-on-year (YoY) fall in consolidated net profit to Rs 2,948.94 crore in Q1 FY21 against Rs 3,132.73 crore in the corresponding quarter year ago.

Consolidated revenue came at Rs 26,194.76 crore, down 2.57 percent from Rs 26,886.22 crore in Q1 FY20.

Consolidated EBITDA rose 21.6 percent to Rs 8,947.7 crore against Rs 7,358.7 crore in Q1FY20. EBITDA margin stood at 34.2 percent against 27.4 percent YoY.

Vikas Jain, Senior Research Analyst at Reliance Securities has recommended buy with a target of Rs 108.

The stock has broken from its weekly Doji and crossover of its long-term averages on the daily charts that confirms an upward move, he said.

The weekly RSI closed above its average-line indicating a strong breakout and the sector is also in positive momentum. Multiple support levels in the range of 89-92 levels would be protected and offer a good risk-to-reward ratio from current levels, he added.

Morgan Stanley | Rating: Overweight | Target: Rs 138

The company reported profit beat which was driven by a lower rebate to SEBs (state electricity boards)

The fixed cost under recovery was due to a technical shutdown & will reverse. The focus is on reducing overdues & increasing renewable capacity, reported CNBC-TV18.

CLSA | Rating: Buy | Target: Rs 140

The company can exceed its FY30 RE target and can match/exceed India’s COP21 commitments of 40 percent non-fossil capacity.

The management guides for 54 percent YoY growth in parent-regulated equity with improved RoE, reported CNBC-TV18.

ICICIdirect | Rating: Hold | Target: Rs 105

Strong focus on renewables and declining phase of coal asset addition augur well for NTPC in a scenario wherein energy landscape is changing. However, we would await execution on the green portfolio before turning buyers.

Motilal Oswal | rating: Buy | Target: Rs 139

NTPC reported strong underlying numbers. This was highlighted by the high plant load factor (PLF) incentives for the company despite lower power demand.

NTPC plans to reach around 130GW capacity by 2032. The mix of Renewable in the capacity may be >30% by 2032. NTPC expects its capitalisation run-rate to be at 5–6GW p.a. for the next three to four years.

Dolat Capital | Rating: Buy | Target: Rs 147

NTPC added capacity of 660MW in Khargone in Q1 FY21. The capacity currently under construction is 20GW with 15GW of coal capacities and

5GW of renewable. The capacity addition target in FY21 remains between 5GW to 6GW, while it is envisaging a capex of Rs210bn in FY21, including emission control equipment.

The regulated equity in Q1 FY21 is Rs 618 billion and is expected to grow at 15 percent CAGR over the next three years.

At 09:18 hrs, NTPC was quoting at Rs 96.80, up Rs 1.40, or 1.47 percent on the BSE.