State-run utility company trades at valuations in-line with peers; Bernstein sees over 20% upside

Shares of state-run utility company will be in focus in Monday's trade (November 25) after the global brokerage Bernstein has continued with its outperform rating on the scrip with the target of Rs 440 per share. The target suggest an upside of over 20 per cent from the last close.

The brokerage's bet on the stock is driven by a slew of factors including, 

 i) Accelerating power demand

ii) Evening shortages

iii) Cost of debt advantage

iv) Receivable advantage

There might not be many levers for upside beyond this, also don’t see a reason for significant downside, added the brokerage.

Furthermore, the brokerage pointed out that the scrip trades at 16x FY25 Earnings & 10x EV/EBITDA that is in line with global peers.

In the previous trade, the stock settled higher by nearly 3 per cent at Rs 365.7 per share on the BSE.

Meanwhie, the company's green energy arm has closed for subscription with the total subscription at 2.55x. The total subscription was led by the retail portion with the 3.59 times subscripton. Following the retail portion's bid is the subscription of QIB.

NTPC share price

The stock in the last one year has zoomed 44 per cent.