NTPC shares gain on healthy Q3 earnings, dividend announcement; CLSA, Jefferies, CITI recommend buy

NTPC Limited shares were among the top gainers on the NSE Nifty50 on Monday, notwithstanding the lackluster show by the index itself. The stock gained on healthy December quarter earnings posted by the company on Saturday, December 28, 2023.  

The counter hit a day’s high of Rs 172.25 gaining 3.5 per cent in the intraday trade. However, the stock lost some steam tracking the overall correction in the stock markets. At 2 pm, the NTPC shares were trading over 1.7 per cent up at Rs 169.2. Meanwhile, the Nifty50 index was down nearly 1 per cent or 175 points to 17429 at the same time.

NTPC reported a nearly 5 per cent year-on-year (YoY) rise in its consolidated net profit to Rs 4,854.36 crore for the December quarter of FY23, on higher revenue, as per a BSE filing. Total income rose to Rs 44,989.21 crore in the reporting quarter versus Rs 33,783.62 crore reported by the company in the year-ago period.

Also Read - NTPC Q3 Results: Net profit jumps nearly 5% YoY to Rs 4,854 cr; company announces dividend

Brokerages Upbeat

NTPC remains a key player in the renewable energy space, making brokerages like CLSA, Jefferies, and CITI bullish on the stock. They maintained a ‘buy’ rating with a target price of Rs 195, 195, and Rs 202 per share, respectively, implying an upside of up to 22 per cent from Friday’s closing of Rs 166 apiece.

According to CLSA, the company reported solid Q3 numbers on multiple fronts and believes the lofty rise in the renewables pipeline to solidify the transition roadmap. The brokerage views NTPC being a leader in the energy transition.

Similarly, CITI said that NTPC has attractive valuations with decent growth in Q3. It also said that renewable asset monetisation is on track with management’s March 2023 guidance.

NTPC Dividend 2023

NTPC’s board of directors approved an interim dividend at the rate of 42.50 per cent (Rs 4.25 per share) on the face value of paid-up equity shares of Rs 10 each for the financial year 2022-23, the company said in its results filing.

Also Read - NTPC Dividend 2023: State-owned power generation company to pay Rs 4.25 dividend; check record and payment date

The company has decided “the date of payment/ dispatch of dividend shall be February 24, 2023.”

Share Price History

NTPC shares have reported a decent growth of 19 per cent in the last one year. The stock has jumped nearly 8 per cent in the last six months and is flat with positive bias so far in January 2023.