In Thursday’s trading session, shares of one of the leading steel PSU stocks under the Ministry of the Government, specializing in the generation and distribution of electricity, were in focus upon recording power generation of 326 billion units in April to December and marking a 3.8 percent year-on-year increase.
Price action
With a market capitalization of Rs. 3,23,480 crores on Thursday, the shares of NTPC Limited rose by 1.5 percent making a high of Rs. 337.60 per share compared to its previous closing price of Rs. 333.65 per share.
What Happened
NTPC specializes in electricity generation and has a diverse energy mix, including thermal, hydro, and renewable power sources.
NTPC Ltd. generated 326 billion units of power from April to December, marking a 3.8 percent increase compared to the previous year. The company’s coal stations achieved a plant load factor of 76.2 percent. It also added 2,724 MW of capacity, bringing the total to 76,598 MW. Additionally, its mining division produced 30.88 million tonnes of coal, reflecting a 23 percent increase from last year
About the company
NTPC Ltd. (National Thermal Power Corporation) is a govt-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.
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 14.66, lower than the industry average of 45.8, indicating potential undervaluation. The PEG ratio of 0.95 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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