Solar Company’s Subsidiary Signs MoU with Chhattisgarh State Power Generation Company Ltd for Development of Renewable Projects
The stock is up by 45 per cent from its 52-week low of Rs 256 per share and gave multibagger returns of 193 per cent in 3 years.
NTPC Green Energy Limited (NGEL) [NTPC Green Energy Limited (NGEL) is a wholly owned subsidiary of NTPC Limited] and Chhattisgarh State Power Generation Company Limited (CSPGCL) have joined forces to accelerate renewable energy development in Chhattisgarh. A Memorandum of Understanding (MoU) was signed in Raipur on November 26, 2024, outlining plans to collaborate on up to 2000 MW of renewable energy projects, including innovative floating solar solutions. This strategic partnership underscores both organisations' commitment to a sustainable future and leverages their combined expertise to drive the growth of clean energy in the region.
Earlier, NTPC Limited, through its subsidiary NTPC Green Energy Limited (NGEL), formed a 50:50 joint venture with Maharashtra State Power Generation Company Limited (MAHAGENCO). The new entity, MAHAGENCO NTPC GREEN ENERGY PRIVATE LIMITED (MNGEPL), will develop renewable energy parks in Maharashtra under the Union Ministry of New and Renewable Energy's Ultra Mega Renewable Energy Power Parks scheme. Additionally, NTPC Ltd announced the formation of ONGC NTPC Green Energy Private Limited (ONGPL), a 50:50 joint venture with Oil and Natural Gas Corporation Limited (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. Furthermore, NTPC has formalized a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited (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 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 3.50 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 45 per cent from its 52-week low of Rs 256 per share and gave multibagger returns of 193 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.