NTPC Share Price: Despite market volatility, Maharatna PSU energy company, NTPC Ltd has emerged as a bullish stock in past one month, surging by more than 7.5%. Currently, the stock is trading around Rs 330, and brokerage Sharekhan is the latest to recommend BUY for a target price of Rs 374. This week, NTPC Group signed multiple agreements worth Rs 96,000 crore with government of Chhattisgarh. Also, the company and its subsidiary have successfully commissioned second & last part capacity of 105 MW Shajapur Solar Project.

NTPC Share Price:

After market hours of March 12, NTPC stock closed at Rs 330.10 apiece on BSE, with a market cap of Rs 3,20,086.95 crore. The stock’s price-to-equity ratio is at 16.47x, while the return on equity is at 12.45%. Its 52-week high and low is at Rs 448.30 apiece and Rs 292.70 apiece respectively.

NTPC has been outperforming both benchmarks Sensex and Nifty which dropped by 3% each in a month. While NTPC shares are up by a whopping 7.5% in the past 1 month.

NTPC Updates:

As per the regulatory filing on March 12, NTPC announced that upon successful commissioning, the second & last part capacity of 50 MW out of 105 MW Shajapur Solar Project (Unit-I) in Shajapur Solar Park, M.P of NTPC Renewable Energy Limited (NTPC REL), a step-down subsidiary of NTPC Limited through its subsidiary NTPC Green Energy Limited, is declared on Commercial Operation with effect from March 13, 2025.

NTPC Rs 96,000 Crore Investment:

Earlier this week, NTPC along with its subsidiary NTPC Green Energy Ltd (NGEL) today signed multiple agreements worth Rs 96,000 crore with the Govt. of Chhattisgarh at Chhattisgarh Energy Investors Summit-2025 held at Raipur. The agreements include Nuclear, Pump Hydro and Renewable projects based on Solar/Wind/Hybrid sources in the state.

Under the Rs 96,000 crore investment plan, the first MOU was signed between NTPC Ltd and Chhattisgarh government for setting up 4200 MW Nuclear Capacity in Chhattisgarh at an estimated investment of Rs 80,000 crore.

The second MoU was signed between Chhattisgarh State Power Generation Company Limited (CSPGCL) & NTPC, pertaining to an intent to invest approx Rs 5876 crores in setting up 1200 MW of Pumped Hydro Storage Project at Sikaser in Gariyaband district of the state.

Lastly, the third Joint Venture Agreement (JVA) was signed between NGEL and CSPGCL for setting up Renewable Energy projects up to 2 GW in the state, at an approximate investment of Rs 10,000 Crore.

Sharekhan Recommendation On NTPC:

According to the Mirae Asset Sharekhan report, the power demand in YTDFY25 (till February) is up only 4.4% y-o-y because of the impact of the monsoon this year and weak economic activity. However, with a hot summer expected this year and temperatures expected to rise, power demand should pick-up. Morever, the long-term power demand growth of ~7% CAGR should bode well for the sector.

Sharekhan’s note added, that NTPC is going to add significant capacity in line with this and will reach 130GW capacity in FY32 from 76GW currently. The company plans to add 26GW thermal capacity till FY32. NTPC is targeting RE capacity of 20 GW by FY27 and 60 GW by FY32. In the next three years, the total capacity of ~25GW is to be added and the share of thermal capacity to be ~5.5 GW.

On the valuation, Sharekhan said, “NTPC’s risk-averse regulated business model provides earnings growth visibility/RoE improvement with strong expansion in both thermal and renewable capacities. Valuations at 1.8x/1.7x its FY26E/ FY27E P/BV seem reasonable given potential long-term growth prospects and the stock offers a decent dividend yield as well. Hence, we maintain a Buy on NTPC with a SoTP target price of Rs. 374.”

NTPC Corporate Actions:

NTPC has carried one bonus issue and has delivered hefty dividends, however, no stock split.

Bonus Issue: The first ever bonus issue by NTPC was of a 1:5 ratio and its ex-date was on March 20, 2019.

Dividends: So far, NTPC has paid up to 43 dividends since February 2005, as per Trendlyne data. In the last 12 months, the dividend payout was of Rs 8.25 per share. Its current dividend yield is of 2.50%.