Jefferies has reiterated its Buy rating on NTPC with a target price of ₹500, citing the upcoming NTPC Green Energy Ltd. (NGEL) listing as a major value unlock. NGEL’s upper price band of ₹108 implies a ₹910 billion market cap, translating to an additional ₹67/share for NTPC post a 20% holding company discount.
NGEL’s renewable energy (RE) capacity stands at 3.3 GW as of September 2024, with ambitious plans to ramp up to 60 GW by 2032, implying a 47% CAGR in capacity addition. Jefferies highlighted that during the last power upcycle, NTPC’s coal business traded at 1.5x-4x forward P/B, making current valuations (excluding NGEL) compelling.
