NTPC shares hit 15-year high; Goldman Sachs says company will benefit from India's clean energy transition

Shares of NTPC, the government-owned power giant, rose 5 per cent to touch a 15-year high on Wednesday (July 19). The buying interest in the scrip occurred after the global brokerage Goldman Sachs, in its report, said that NTPC will benefit from India's clean energy transition.

At around 10:50 AM, shares of the power generation company were trading 4.01 per cent higher on the BSE at Rs 194.7 apiece. The market capitalisation of the private sector bank stood at Rs 1,88,794.09 crore. The scrip has rallied for the second straight day. NTPC stock closed over 2 per cent higher at Rs 192.6 apiece.

Goldman Sachs has initiated a 'buy' call on NTPC stock for a target price of Rs 265 apiece, which translates to an upside of 41.6 per cent.

The brokerage, in its report, has said that NTPC will emerge as a winner in India's clean energy transition because of its 'structural advantage' of low-cost debt, which will provide a strong moat.

The report further stated that NPTC's rising peak shortages will re-rate its legacy thermal business.

What do other analysts suggest about NTPC stock?

"The stock has broken a crucial level of Rs 190 and could rally to up to Rs 200. The view is positive, and one should buy on correction, keeping the target at Rs 200 and stop loss at Rs 190 apiece," said Zee Business panellist Sandeep Wagle.

NTPC Q4 results

The New Delhi-based power generation company posted a 6 per cent fall in its consolidated net profit to Rs 4,871.55 crore for the quarter that ended on March 31, 2023, against Rs 5,199.55 crore logged a year ago.

Its total income in the quarter increased to Rs 4,4745.74 crore from Rs 37,724.42 crore a year ago.

NTPC share price: Past performance

So far in 2023, NTPC's shares have gained over 16 per cent as compared to the Nifty 50's rise of nearly 9 per cent.

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