Brokerage expects strong earnings from this ‘Maharatna’ share which has fallen 28 percent from record high.

Last updated:January 27, 2025, 3:30 PM IST

Stock To Buy-Many brokerages have advised to invest money in the shares of Maharatna company NTPC. NTPC shares are currently trading 28% below their 52-week high.

Most of the brokerage firms are positive about NTPC shares.

New Delhi. Brokerages are bullish on the shares of NTPC, a Maharatna company of power sector. NTPC share is currently trading about 28 percent below its 52-week high. Brokerage says that now the valuation of this Maharatna share has become attractive, hence investors should invest money in it. He believes that the company’s strong pipeline and focus on green energy make it an attractive bet for the long term. The price of this share has fallen by 0.62 percent in the last one year. Has given returns of 92% in last 2 years. The return of this stock in the last 3 years has been 140% and in the last 5 years it has been 185%.

NTPC’s profit in the third quarter of the current financial year 2025 increased by 3.1% to ₹ 4,711.4 crore. At the same time, income increased by 4.8% to ₹ 41,352.3 crore. The company has declared an interim dividend of ₹2.5 per share (25%), which will be paid on February 18, 2025.

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Brokerage opinion on NTPC
Brokerage firm ICICI Securities has maintained its ‘buy’ rating on NTPC share and set its target price at ₹ 430. According to brokerage, from the current level of ₹ 322, this stock can give a return of about 33%. At the same time, Nuvama has kept its target price at Rs 412 for 12 months. Antique Broking also expects to earn from this share. The brokerage has kept the target price of NTPC share at Rs 429, which is 32 percent more than the current price.

Global brokerage firm Jefferies has also advised investors to buy NTPC shares. The brokerage has kept the target price of this stock at ₹ 500, which shows 55% upside from the current level. The brokerage believes that even though the results of the third quarter may have been weaker than expected, better performance is expected in the fourth quarter.

Why invest?
Market pundits have also given some reasons for investing in NTPC. These are..

• Focus on Green Energy: NTPC’s green subsidiary raises ₹10,000 crore through IPO and wins 2.4 GW of new renewable bids. This has strengthened the company’s hold in green energy.
• Cheap Valuation: The stock is trading at ~1.7x FY27E BV (standalone), close to its historical average. Brokerages consider this an attractive valuation.
• Strong Order Book: The company has 30 GW capacity under construction, which includes 17.6 GW thermal and 12 GW hydro and renewables.

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