Ntpc's target Rs 379: IIFL Securities's Top Stock to Buy Today

IIFL Securities has issued a 'buy' recommendation for NTPC with a target price of Rs 379, indicating an upside potential of around 3%. The current market price of NTPC stands at Rs 367.1. This recommendation is based on the company's strong fundamentals, including its dominant market position in the power sector, increasing demand for electricity, and ongoing government support for renewable energy projects. The target price implies a potential return of approximately 3.3% from the current market price.

About Ntpc:

NTPC Limited, formerly National Thermal Power Corporation Limited, is an Indian public sector undertaking engaged in the business of generation of electricity and allied activities. It is a Fortune Global 500 company with a net worth of US$30.5 billion, as of March 2023. NTPC is the largest thermal power generating company in India, with an installed capacity of 68.6 GW (including JVs). It is also one of the largest power companies in the world. NTPC has a diversified portfolio of power plants, including coal-fired, gas-fired, nuclear power and renewable energy sources. The company has a presence in all the major power-generating regions of India and is also involved in international projects.

52 Week Price Trend:

NTPC, India's largest power producer, is currently trading at Rs 367.1 on the NSE. This represents a significant premium to its 52-week low of Rs 166.65, but still below its 52-week high of Rs 348.05. The company's shares have been on a steady upward trend in recent months, as investors bet on the government's push for renewable energy and NTPC's strong financial performance. However, the stock remains volatile, and investors should be aware of the risks involved before investing.

Stratzy's MOST Analysis:

Stratzy's MOST framework rated NTPC with "BBB" indicating medium fundamental risks. The evaluation encompasses four pillars: Management, Outlook, Safety, and Trend. Each pillar receives a score, and the overall rating is derived from the cumulative assessment. NTPC's performance in these areas was positive, with strengths in management and stability, but potential areas for improvement in growth prospects and risk mitigation. The "BBB" rating suggests a balanced risk-reward profile for investors, with NTPC's fundamental stability tempered by moderate concerns regarding its future trajectory and safety measures.

Company's Fundamentals:

NTPC (NSE: NTPC) boasts a Stock PE ratio of 16.78, indicating that the stock is currently trading at a price that is 16.78 times its annual earnings. The PB Ratio of 2.13 suggests that the stock's market value is 2.13 times the value of its assets. Additionally, NTPC offers a Dividend Yield of 2.15%, which represents the annual dividend payment as a percentage of the current market price, providing investors with a passive income stream.

Fundamental and Technical information provided in this blog were last updated on 02 May, 2024

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