Synopsis:
NTPC is in focus after ICICI Securities expects the share to rise by another 33 percent, citing that the PSU plans to triple capacity to 244 GW by FY37, led by renewables and nuclear expansion.
The shares of this leading power generation company, which is also a Maharatna PSU, are in focus after ICICI Securities has given it a significant upside. In this article, we will dive more into the details of it.
With a market capitalization of Rs 3,20,669 crore, the shares of NTPC Ltd are currently trading at Rs 330 per share, down by 1.6 percent from its previous day closing price of Rs 335.20 per share. Over the past five years, the stock has delivered a return of 278 percent, outperforming NIFTY 50’s return of 109 percent.
Analyst Comments
Leading domestic brokerage ICICI Securities has maintained its “Buy” call on the stock and has set a target price of Rs 439 per share, signaling an upside potential of 33 percent from its current market price.
The brokerage noted that NTPC is planning significant developments over the next ten years. The company aims to triple its total power generation capacity to about 244 GW by FY37. Earlier, the firm raised its capacity target for FY32 to 149 GW, up from a previous figure of 130 GW.
This major growth will depend largely on expanding the renewable energy sector and thermal power. NTPC plans to achieve 60 GW of renewable energy capacity by FY32 and later increase it to 120-130 GW by FY37. Additionally, the company is introducing new product lines like green hydrogen, energy storage, and nuclear power, aiming for a nuclear capacity of 30 GW by FY47.
According to the brokerage, the main concern is how and when these targets will be met. In the first half of FY26, the company added about 4.4 GW of new capacity across thermal, renewable, and hydro projects. However, it has reduced its FY26 capacity addition target from 11.8 GW to 9.1 GW, indicating some delays.
Regarding NTPC Green Energy, the renewable division of the company achieved nearly 1.5 GW in H1 FY26 against a full-year target of 5.4 GW. The group plans to boost capacity creation to 9.6 GW in FY27 and 10.6 GW in FY28, showing a steady increase in projects.
Financial Highlights
NTPC has reported an operating revenue of Rs 44,786 crore in Q2 FY26, representing a flatish growth as compared to Rs 44,706 crore in Q2 FY25. Regarding its profitability, it reported a net profit of Rs 5,225 crore in Q2 FY26, a decline of 3 percent as compared to Rs 5,380 crore in Q2 FY25.
The stock delivered an ROE and ROCE of 12.13 percent and 9.95 percent respectively, and is currently trading at a low P/E of 13.57x as compared to its industry average of 32x.
In the near future, ICICI Securities views NTPC as well-positioned to benefit from the growth of the Indian power sector and the energy transition. Given its aggressive push into renewables, entry into new energy segments, and a strong execution pipeline, the company is likely to achieve nearly triple capacity by FY37.
Written by Satyajeet Mukherjee
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