Jefferies has initiated a ‘buy’ call on NTPC, setting a target price of ₹485 per share, implying a 10% upside from the current market price of ₹440.30. NTPC Green, the renewable energy arm of NTPC, currently operates 3.2 GW of capacity, consisting of 3.1 GW from solar and 100 MW from wind energy.
The company has ambitious plans to significantly ramp up its renewable energy capacity, targeting 60 GW by 2032, representing a 19x increase and implying a 44% compound annual growth rate (CAGR) in capacity. NTPC has also filed a draft red herring prospectus (DRHP) for a fresh issue of up to ₹10,000 crore to support this growth.
Jefferies estimates that, assuming a 10-15% stake dilution and NTPC’s renewable energy business being valued at a 2x premium to its coal business, the company could potentially add 5-11% upside to its current market price.
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