NTPC share should be bought for target of Rs 120 / Rs 124, support at Rs 103

NTPC Share price closed at Rs 107, down Rs 0.85 or 0.8%. NTPC share price performance over the week has seen it moved up nearly 3% from Rs 104 to Rs 107. ICICI Securities says that NTPC has closed FY21 with excellent operational figures despite the challenges faced during H1FY21. Helped by disbursals by PFC and REC through the Aatmanirbhar scheme for discoms, NTPC’s FY21-end receivables are estimated to have declined to 45-48 days (Rs 120 bn – Rs 140 bn), lower than at FY20-end. NTPC’s transition towards an integrated energy company with focus on clean and green energy is taking shape with projects in several business areas, both large-scale and pilots. Maintain BUY rating on NTPC with an unchanged target price of Rs 165.

ICICI Securities says that NTPC is developing India’s largest floating solar PV project with capacity of 100MW, spread over 450 acres at the Ramagundam plant’s reservoir in Telangana. Cost of the project is Rs4.2bn and it is expected to be commissioned by May’21

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Technical Analyst Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking says that NTPC is consolidating from past couple of weeks and it is on the verge of a breakout from downward sloping trend line which is placed at Rs 110 above that, the upside will open for Rs 120 / Rs 124 levels. Support is placed at Rs 103.

ICICI Securities says NTPC is focusing on green hydrogen-based pilot mobility projects, as well as hydrogen blending in natural gas. Further, it is also working on pilot projects for green methanol, green ammonia, and microgrids. ICICI Securities highlights that NTPC has deployed 14 electric buses in Andaman and Nicobar Islands. As per the MoP, a total of 970 public EV charging stations have been installed across India, of which, NTPC has installed 140 stations.

ICICI Securities says that NTPC purchased GAIL's share (25.51%) in Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) and sold its own share (14.82%; on fully diluted basis) in Konkan LNG Ltd. to exit completely. NTPC's shareholding in RGPPL (a subsidiary company) now stands at 86.49%.