A Maharatna company involved in the production and sale of power to state power utilities has captured investor attention following board approval of an investment of Rs.20,921.85 crore in two thermal power plants.
Price Variation
In Friday’s trading session, NTPC (National Thermal Power Corporation) Ltd’s shares rose to an intra-day high of Rs.431.4 per share, rising 2 percent from its previous closing price of Rs.424 apiece.
Rationale for the rise
The surge in the shares of NTPC came after the Board of Directors approved an investment of Rs.20,921 crore in two thermal power projects on 19th September.
The investment for the Sipat Super Thermal Power Project, Stage-III (1×800 MW), was approved at an estimated cost of Rs.9,790.87 crore.
The Darlipali Super Thermal Power Project, Stage-II (1×800 MW), received an investment approval with an estimated cost of Rs.11,130.98 crore.
Order Book and Capacity Enhancement
NTPC has secured thermal power orders for 4.5 GW, with an additional 15.2 GW expected over the next two fiscal years.
The company is committed to expanding its renewable energy (RE) capacity, aiming for over 60 GW by 2032, with a visible RE pipeline of 24 GW.
NTPC plans to commission Flue Gas Desulfurization (FGD) for 54 GW in the next three years, with an estimated investment of Rs.27,000 crore. The company targets a coal production of 34 million metric tons (MMT) in FY24, reflecting a 48 percent growth.
By FY30, NTPC aims to meet 25 percent of its own coal needs and expand capital expenditure for NEEPCO (North Eastern Electric Power Corporation Limited) and THDC (Tehri Hydro Development Corporation), while executing 12 GW of non-fossil capacity at an estimated cost of Rs.75,000 crore.
Recent Strategic Initiatives
NTPC’s Kayamkulam plant, known as the Rajiv Gandhi Combined Cycle Power Project, will soon launch a pilot project for electricity generation using methanol. NTPC has signed an MoU with Bharat Heavy Electricals (BHEL) to demonstrate methanol firing in the plant’s gas turbine system.
Methanol, a cleaner fuel, produces fewer emissions than traditional fuels. Phase 1 of the test will last a year, and if successful, could lower power generation costs, support a circular carbon economy, and reduce emissions.
IPO filing
NTPC’s green energy arm, NTPC Green Energy Ltd, has submitted its draft red herring prospectus (DRHP) for a Rs.10,000 crore IPO, boosting investor sentiment during the IPO season.
The offering consists entirely of a fresh issue with no offer-for-sale (OFS) component. Retail investors holding NTPC shares can participate under the shareholder category, raising their maximum investment limit to Rs.4 lakh.
Financials
According to NTPC Ltd’s latest financial update, revenue increased by 13 percent to Rs.48,521 crore in Q1 FY25 from Rs.43,075 crore in Q1 FY24. The company’s net profit increased 12.2 percent to Rs.5,506 crore, from Rs.4,907 crore in the same period.
Company Profile
NTPC Limited is India’s largest power utility, with an installed capacity of over 76,000 MW. The company primarily focuses on generating and distributing electricity while also diversifying into renewable energy and coal mining to sustainably support India’s energy requirements.
Written by – Siddesh S Raskar
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