Energy Giant Announces Rs 96,000 Crore Investment in Chhattisgarh: 4200 MW Nuclear Project, 1200 MW Hydro Storage, and 2 GW Renewable Energy Expansion
With a PE ratio of 14.5x, the company trades at a discount compared to the industry PE of 28.8x. The company has ROCE of 10.5 per cent and ROE of 13.6 per cent.
NTPC Limited, a prominent Indian energy company, has announced a significant investment of Rs 96,000 crore in Chhattisgarh. This investment is part of NTPC's commitment to advancing sustainable energy solutions and supporting India's energy transition and Net Zero goals. The announcement was made at the Chhattisgarh Energy Investors Summit-2025 in Raipur, where NTPC and its subsidiary, NTPC Green Energy Ltd (NGEL), signed multiple agreements with the Government of Chhattisgarh.
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The first Memorandum of Understanding (MoU) involves NTPC Ltd. and the Government of Chhattisgarh collaborating to establish a 4200 MW nuclear capacity in the state, with an estimated investment of Rs 80,000 crore. The second MoU between Chhattisgarh State Power Generation Company Limited (CSPGCL) and NTPC outlines an investment of approximately Rs 5,876 crore for a 1200 MW Pumped Hydro Storage Project in Gariyaband district. Additionally, a Joint Venture Agreement (JVA) was signed between NGEL and CSPGCL to develop renewable energy projects up to 2 GW, with an investment of Rs 10,000 crore, aimed at fulfilling the Renewable Generation Obligation (RGO) and Renewable Purchase Obligation (RPO) of local entities. The signing ceremony was attended by various dignitaries, including the Chief Minister of Chhattisgarh, Shri Vishnu Deo Sai.
NTPC Limited is a leading energy company in India, with a current stock market price of Rs 329.15. The company has a market capitalisation of Rs 3,19,359.70 crore. Over the past year, the stock has experienced a return of -6.48 per cent, while over a three-year period, it has provided a return of 149.55 per cent, qualifying it as a multibagger stock. The stock's 52-week high is Rs 448.3, and its 52-week low is Rs 296.85. The company has been maintaining a healthy dividend payout of 39.5 per cent.
In the Quarterly Results of Dec-24, revenue stood at Rs 45,052.82 crore, reflecting a YoY growth of 5.21 per cent and a QoQ growth of 0.80 per cent. Net profit for the quarter was Rs 5,062.51 crore, declining by 1.80 per cent YoY and 4.02 per cent QoQ. The net profit margin for Dec-24 was 11.24 per cent, compared to 11.80 per cent in Sep-24 and 12.04 per cent in Dec-23.
For FY24, revenue was Rs 1,78,500.88 crore, showing a growth of 1.30 per cent compared to FY23 revenue of Rs 1,76,207.18 crore. Net profit for FY24 stood at Rs 21,979.97 crore, marking a 10.86 per cent increase from Rs 16,142.35 crore in FY23. The net profit margin for FY24 was 9.04 per cent, compared to 8.26 per cent in FY23.
With a PE ratio of 14.5x, the company trades at a discount compared to the industry PE of 28.8x. The company has ROCE of 10.5 per cent and ROE of 13.6 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.