In the early hours of January 4, NTPC witnessed a notable gain of nearly 4 percent in its share value. By 11:30 am, the stock had climbed to Rs 321.55, marking a 5 percent upswing on the NSE.
As outlined in the Axis Securities report, NTPC’s significant presence in conventional power, coupled with a robust cost-plus business model, strategically positions the company amidst a burgeoning peak power cycle. Analysts emphasize that this positioning is pivotal in fostering stable cash flows, paving the way for growth primarily driven by renewable energy ventures. The report identifies NTPC as a sound portfolio investment due to its dependable dividend yield, while also hinting at the potential for further rerating, especially if peak deficits escalate in the future and through value realization in the green energy sector.
The report from Axis Securities underlines the positive impact of Thermal Capex revival on NTPC, especially in addressing the current power deficit. Recognizing the inherently seasonal nature of renewable power, the report underscores the importance of thermal additions to provide foundational capacity and ensure grid stability, factors that are expected to sustain the demand for NTPC’s offerings.
