President of India-Backed Thermal Power Company signed a JV with RVUNL & Approves Rs 79,738.45 crore investment for the expansion of Thermal Power Projects in India
The stock is up by 73.5 per cent from its 52-week low of Rs 235.25 per share and gave multibagger returns of over 200 per cent in 3 years.
NTPC Limited and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) have formalized their partnership on November 4, 2024, by signing a Joint Venture Agreement. This collaboration aims to establish a 50:50 joint venture company that will take ownership and operational control of RVUNL's 2320 MW Chhabra Thermal Power Plant. The agreement also paves the way for exploring potential expansion opportunities for the power plant's capacity.
The company also approves Rs 79,738.45 crore investment for the expansion of 3 Thermal Power Projects in India
1) The company has accorded investment approval for Telangana Super Thermal Power Project, Phase-II (3x800 MW) at an appraised current estimated cost of Rs 29,344.85 crore.
2) The company has accorded investment approval for Gadarwara Super Thermal Power Project, Stage-II (2x800 MW) at an appraised current estimated cost of Rs 20,445.69 crore.
3) The company xhas accorded investment approval for Nabinagar Super Thermal Power Project, StageII (3x800 MW) at an appraised current estimated cost of Rs 29,947.91 crore.
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About the Company
NTPC (National Thermal Power Corporation) Ltd along with its subsidiaries/ associates & JVs is primarily involved in the generation and sale of bulk power to state power utilities. 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 4 lakh crore and reported positive numbers in its financial results (Q1FY24 & 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 73.5 per cent from its 52-week low of Rs 235.25 per share and gave multibagger returns of over 200 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.