NTPC poised to zoom 17%, says HSBC - Know what may power the stock

NTPC share price: Brokerage firm HSBC has estimated a 17 per cent upside in NTPC stock which translates into Rs 28 per share gains from the recommended price level of Rs 172. It has put a price target of Rs 200. The stock was trading at Rs 172.35 on NSE, up 0.44 per cent from the previous close.

The stock today gained on Reuters report which said that NTPC is planning to sell its 20 per cent stake in green energy business by the end of this financial year via private placement route.  It is expected to raise USD 36.4 crore (around Rs 2985 crore), the report said.  

Quoting sources, the Reuters report said that NTPC Green Energy Limited will likely bring its IPO in next financial year. Canada Investment Board, Petronas and Brookefield have shown interest, the report said.

NTPC has outperformed Nifty50 by nearly 30 per cent giving returns of over 36 per cent as against 7 per cent returned by Nifty according to data sourced from Trendlyne. In terms of valuation, the stock is trading at a price-to-book value of 1.2 which is below industry median.

Also Read: Stock Market Today LIVE: Sensex widens losses to 400 points, Nifty down 110 points on IT sector weakness; Infosys among top losers

The stock has exhibited low volatility and traded at a 1-year beta of 0.64. A number below one is considered less volatile.

In terms of momentum indicators, RSI stands at 52.8. A number below 20 indicates oversold while above 70 indicates overbought.

Price Chart

 Source: NSE

Technical View
The chart structure display positive trends, technical analyst Nilesh Jain said. The near term target is Rs 180, Jain said. He is Assistant Vice President - Lead Derivative and Technical Research at Centrum Broking.

He sees a strong support at Rs 168. Jain said that the stock is approaching a major breakout level of Rs 174, breaching which a further upside will open in this stock. NTPC counter hit its 52 Week High of Ts 182.95 on 1 November 2022.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)