Investec has maintained its ‘Buy’ rating on NTPC stock, with a revised target price of ₹421, down from ₹457. The brokerage sees the recent stock correction as a valuable opportunity for investors.
Key highlights from Investec on NTPC stock:
- Stock correction as an opportunity: Investec considers the recent dip in NTPC stock as an entry point, supported by its robust coal-based capacity and a regulated business model.
- Strong and stable coal-based capacity: NTPC’s coal-based operations remain reliable, contributing significantly to its regulated revenue streams.
- Risk-averse business model: The company’s regulated business model provides stability, making it less vulnerable to market volatility.
- Focus on cleaner energy: NTPC is evolving into a cleaner energy producer by actively increasing its renewable energy capacity, a strategic move in line with global trends.
- Valuation adjustment: Investec assigns a 25% holding discount to NTPC’s green energy business, reflecting its transition efforts.
Disclaimer: This article is based on Investec’s report and represents their outlook. The information is for educational purposes only and should not be considered financial advice. Always consult a financial advisor before making investment decisions.
