President of India-Backed Power Company & EDF to Collaborate on Pumped Storage, Hydro Projects & RE Opportunities
The stock is up by 11.3 per cent from its 52-week low of Rs 292.75 per share and gave multibagger returns of 165 per cent in 3 years.
NTPC Limited, an Indian Maharatna company, and EDF India Private Limited, a subsidiary of the French state-owned Électricité de France SA, have partnered to develop and operate pumped storage and other hydropower projects, potentially bundled with renewable energy sources. The non-binding term sheet, signed by representatives from both companies in the presence of key officials including the Secretary of the Ministry of Power, outlines plans for joint development, construction, ownership, operation, and maintenance of these projects, as well as exploration of distribution business opportunities.
Following the term sheet signing on February 23, 2025, during Elecrama 2025, NTPC and EDF intend to establish a 50/50 joint venture company, pending government approvals. This JV will execute projects independently or through subsidiary project-specific vehicles (SPVs) within India and neighbouring countries. Both companies bring significant expertise and resources to the partnership, aiming to contribute substantially to India's renewable energy sector, promoting innovation, environmental responsibility, and decarbonization of electrical systems through tailored solutions.
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About the Company
NTPC Ltd., India's largest integrated power utility, plays a crucial role in meeting the nation's energy demands, contributing one-fourth of the total power requirements. With an installed capacity exceeding 77 GW and an additional 29.5 GW under construction, including a significant 9.6 GW from renewable sources, NTPC is committed to sustainable growth. The company aims to achieve 60 GW of renewable energy capacity by 2032, demonstrating its dedication to clean energy. Boasting a diverse portfolio encompassing thermal, hydro, solar, and wind power plants, NTPC ensures a reliable and affordable electricity supply to the nation. By embracing best practices, fostering innovation, and adopting clean energy technologies, NTPC is paving the way for a greener future.
The President of India owns the majority of the stake (51.10 per cent). Talking about the financials, NTPC Ltd has a market cap of over Rs 3 lakh crore and reported positive numbers in its financial results (Q3FY24 & 9MFY25). The company has been maintaining a healthy dividend payout of 40 per cent. The stock has a PE of 14x whereas the sectoral PE is 30x with an ROE of 14 per cent and an ROCE of 11 per cent. The stock is up by 11.3 per cent from its 52-week low of Rs 292.75 per share and gave multibagger returns of 165 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.