In Monday’s trading session, shares of one of the leading PSU stocks under the Ministry of the Government, specializing in the generation and distribution of electricity, were in focus following a partnership with the US-based Clean Core Thorium Energy to explore the development and deployment of advanced nuclear energy for an enriched life.
Price action
With a market capitalization of 3,24,838 Crores on Monday, the shares of NTPC Limited is down by 0.3 percent making a low of Rs 329.85 compared to its previous closing price of Rs 335.
What Happened
NTPC Ltd. has announced a strategic partnership with US-based Clean Core Thorium Energy (CCTE) to explore the development and implementation of advanced nuclear energy technologies, with a particular focus on thorium-based fuel, known as Aneel.
CCTE is recognized as a leading developer of thorium-based nuclear fuel technologies and is dedicated to pioneering research in advanced nuclear fuel cycles. CCTE’s flagship Aneel fuel is a thorium-based fuel designed for pressurized heavy water reactors (PHWRs). PHWR reactors are significant for reducing nuclear waste, enhancing India’s energy security by using domestically available thorium, and improving safety and proliferation resistance.
NTPC has partnered to integrate nuclear energy solutions into its energy portfolio as part of its broader strategy to diversify and enhance its power generation capabilities. By venturing into the nuclear energy sector, NTPC aims to harness clean, reliable, and baseload power.
About the company
NTPC Ltd. (National Thermal Power Corporation) is a state-owned power giant and one of the leading players in the Indian energy sector. Founded in 1975, NTPC specializes in electricity generation and has a diverse energy mix, including thermal, hydro, and renewable power sources. With an installed capacity of over 70,000 MW, NTPC is the largest power utility in India.
NTPC’s expertise extends beyond power generation; it is also involved in power transmission, energy trading, and the development of cutting-edge technologies in clean and efficient energy. The company has made substantial investments in research and development to advance energy storage solutions, smart grids, and other sustainable technologies.
The company operates numerous power plants across the country and is focused on expanding its renewable energy footprint, including solar, wind, and hybrid projects, in line with India’s goal of achieving carbon neutrality.
Key insights
NTPC Ltd has a P/E ratio of 14.72, lower than the industry average of 45.8, indicating potential undervaluation. The PEG ratio of 0.96 supports this, while an EPS of over 22 highlights strong profitability, making NTPC an attractive investment.
Financials
The company’s revenue declined by 0.4 percent from Rs 45,384 crore to Rs 45,197 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 4,614.64 crores to Rs 5,274.59 crore during the same period.
Key Financial ratios
NTPC (National Thermal Power Corporation) Limited has an Return on Equity (RoE) of 13.12 percent and a Return on Capital Employed (RoCE) of 10.16 percent. Furthermore, the company’s debt-to-equity ratio is 1.44.
Written by Sridhar J
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