Strong show by NTPC energises the bulls on Dalal Street!

NTPC featured in the list of top F&O gainers on Monday when markets staged a stellar recovery.

NTPC featured in the list of top F&O gainers on Monday when markets staged a stellar recovery.Strong performance by NTPC in the quarter goneby in challenging environment is what provided fodder to the bulls on Monday.

Demand recovery led to improvement in the sales. The street is impressed by the work done on the renewable energy front. NTPC is betting big on renewable front by doubling its targeted capacity to 60GW.  Expected capex on thermal front is also keeping bulls hooked on this counter for long term.

The RoE is expected to expand for NTPC going forward and the PAT is expected to grow by close to 10 per cent for foreseeable future and hence the optimism is expected to remain in the counter going ahead. NTPC has gained more than 23 per cent in one year while on YTD basis the stock is up by more than 19 per cent and in one month the stock is up by nearly 5 per cent. At current prices the dividend yield for NTPC stands close to 5 per cent. 

NTPC is primarily involved in the generation and sale of bulk power to State Power Utilities. Other business includes providing consultancy, project management & supervision, energy trading, oil & gas exploration and coal mining.