Synopsis:
NTPC Ltd is in focus after Jefferies has assigned a new target price with a Buy rating with an upside of more than 30%.
One of the leading brokerage firms, Jefferies, has given a new target price for a prominent power stock, based on its latest assessment of their financial performance, growth potential, and prevailing market trends.
With the market capitalization of Rs. 3,26,438.27 crore, the shares of NTPC Limited is trading at Rs. 336.60, up by 0.46 percent from its previous day’s close price of Rs. 335.05 per equity share.
What’s the News?
Jefferies has maintained its ‘Buy’ rating on the stock with the target price of Rs. 440, with an upside of 32.11 percent from CMP of Rs. 756.95. Jefferies noted that management addressed concerns over weak power demand in India. They expect medium-term demand to return near 6 percent with recovery in agriculture and consumption, while government efforts to meet peak demand should support both thermal and renewable growth. NTPC showed confidence in adding 11 GW capacity in FY26 (vs. Jefferies estimate of 6.4 GW). The brokerage sees capacity ramp-up and double-digit EPS CAGR in the medium term as key re-rating drivers.
About the Company
NTPC Limited, founded in 1975 and based in New Delhi, is an integrated power company in India. It operates through Generation and Other segments, producing electricity from fossil fuels, hydro, solar, wind, nuclear, and other renewable sources, while also engaging in coal mining and energy trading.
In Q1FY26, the company reported a revenue of Rs. 47,065 cr, down 3.0 percent YoY from Rs. 48,529 cr in Q1FY25 and down 5.6 percent QoQ from Rs. 49,834 cr in Q4FY25. Profit for the quarter rose 10.9 percent YoY to Rs. 6,108 cr from Rs. 5,506 cr in Q1FY25 but fell 22.7 percent QoQ compared to Rs. 7,897 cr in Q4FY25, indicating strong margin management despite lower top-line performance.
At the moment, the company’s P/E ratio is 13.6x lower as compared to its industry P/E 31.5x. The company’s ROE and ROCE are 12.1 percent and 9.95 percent respectively, and the D/E ratio of 1.36, indicates the company’s financial performance.
Written by Akshay Sanghavi
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