Power company stock up after announcing operation super thermal plant

Expansion strengthens capacity, reflecting company's growth and diversification efforts.

NTPC Limited has announced the commercial operation of Unit #2 at the North Karanpura Super Thermal Power Project. This 660 MW unit began commercial operations at midnight on March 20th, 2024. With this addition, NTPC's standalone commercial capacity increases to 59,298 MW, and their group commercial capacity reaches 75,418 MW. This expansion strengthens NTPC's ability to generate and distribute electricity across India.

NTPC Limited's stock currently trading at Rs 318.50, reflecting a gain of Rs 2.50 or 0.79 per cent compared to the previous day's closing price. The stock price fluctuated throughout the trading session, reaching a high of Rs 323.00 and a low of Rs 314.90. The current market capitalization of NTPC stands at a staggering Rs 3,08,838.82 crore.

It's important to note that NTPC trades within a price band defined by the exchange. The upper price band for the stock is Rs 347.60, representing a 10 per cent increase from the current price. Conversely, the lower price band sits at Rs 284.40, indicating a potential 10 per cent decline.

Looking at valuation the stock is trading at a PE of 15.8 times which is higher than its three-year median PE of 9.3 times. If we look at its PBV, it is currently at 2 times, which is lower than the industry PBV of 2.27 times. The company has a three-year average return on equity (ROE) of 12.4 per cent and a return on capital employed (ROCE) of 9.16 per cent.

NTPC, India's largest energy conglomerate, has been a dominant power major since 1975, focusing on the entire value chain of power generation. It has expanded from fossil fuels to hydro, nuclear, and renewable energy sources, aiming to reduce its carbon footprint and greenhouse gas emissions. NTPC has also diversified into consultancy, power trading, training of power professionals, rural electrification, ash utilization, and coal mining.

Disclaimer: The article is for informational purposes only and not an investment advice.