President of India-Backed Thermal Power Company Incorporated 50:50 JV with Maharashtra State Power Generation Company Ltd
The stock is up by 44 per cent from its 52-week low of Rs 253.70 per share and gave multibagger returns of 185 per cent in 3 years.
NTPC Limited, through its wholly owned subsidiary NTPC Green Energy Limited (NGEL), has formed a 50:50 joint venture with Maharashtra State Power Generation Company Limited (MAHAGENCO). The newly formed entity, MAHAGENCO NTPC GREEN ENERGY PRIVATE LIMITED (MNGEPL), was incorporated on November 25, 2024. This strategic partnership aims to develop, operate, and maintain Renewable Energy Parks in Maharashtra under the Union Ministry of New and Renewable Energy's (MNRE) Ultra Mega Renewable Energy Power Parks (UMREPP) scheme. MNGEPL will also be responsible for allocating these parks to entities for developing renewable energy projects.
The acquisition involves a cash consideration for the subscription of equity shares in MNGEPL. NGEL has subscribed to 50,000 equity shares at a face value of ₹10 each, resulting in a 50% stake in the joint venture. This acquisition aligns with NTPC's broader strategy of expanding its renewable energy portfolio and contributing to India's renewable energy goals. The formation of MNGEPL is expected to drive the development of large-scale renewable energy projects in Maharashtra, fostering sustainable energy solutions and economic growth.
Earlier, NTPC Ltd announced the formation of ONGPL, a 50:50 joint venture with ONGC to explore and develop renewable energy projects globally, with a focus on offshore wind. This strategic move, approved by the Ministry of Power, aligns with India's commitment to clean energy. Additionally, NTPC has formalized a joint venture with RVUNL to assume ownership and operational control of the Chhabra Thermal Power Plant and has approved a substantial investment for the expansion of three thermal power projects, demonstrating its dedication to both renewable and conventional energy sources.
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About the Company
NTPC (National Thermal Power Corporation) Ltd along with its subsidiaries/ associates & JVs is primarily involved in generating and selling bulk power to state power utilities. The President of India owns most of the stake (51.10 per cent). Regarding financials, NTPC Ltd has a market cap of over Rs 3.5 lakh crore and reported positive numbers in its financial results (Q2FY24 & FY24). The company has been maintaining a healthy dividend payout of 40 per cent.
The stock has a PE of 18x whereas the sectoral PE is 37x with an ROE of 14 per cent and an ROCE of 11 per cent. The stock is up by 44 per cent from its 52-week low of Rs 253.70 per share and gave multibagger returns of 185 per cent in 3 years. Investors should keep this PSU stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.