An Indian government-owned power producing company is NTPC Ltd, formerly known as National Thermal Power Company Ltd. It is India’s largest power generation business with a current installed capacity of 66,885 MW. NTPC is active in a number of power industry subsectors, including thermal, hydro, and renewable energy. The business is dedicated to giving its clients reliable, reasonably priced electricity while putting a strong emphasis on environmentally friendly development.
We shall examine NTPC’s past, current activities, and impact on India’s energy industry in this post. We’ll also talk about the company’s difficulties and goals for the future, particularly how it fits into India’s ambitious aspirations for renewable energy.
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NTPC IN RECENT NEWS
- NTPC’s generation figures for the current fiscal year FY’23 show a growth rate of 11.93%.
- After reporting its Q1 results, NTPC shares surged over 3%, reaching a new 52-week high.
- NTPC’s shares reached a 15-year high, with Goldman Sachs stating that the company stands to gain from India’s shift towards clean energy.
- NTPC has achieved an impressive Profit After Tax of Rs. 16,912.55 crore, demonstrating a remarkable Net Profit Compound Annual Growth Rate (CAGR) of 13.25%.
- By 2030, NTPC intends to develop 3.5 GW of capacity, propelling its stock to become the second-largest gainer in the Nifty 50.
HOW TO BUY NTPC SHARES?
You have multiple options for purchasing NTPC Ltd shares through the following trading platforms:
NTPC SHARE PRICE TARGET 2023
|NTPC SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
The projected figures indicate an overall positive trend, with some minor fluctuations throughout the year. As of August 2023, the minimum and maximum prices are expected to be ₹208.36 and ₹229.20, respectively. This represents a potential growth percentage of over 29% from the minimum price.
Moving forward to September 2023, the minimum and maximum prices are predicted to be ₹213.16 and ₹234.47, respectively. This shows a further increase in the share price of NTPC LTD. Similarly, in November 2023, the maximum price is expected to reach ₹232.20. These figures indicate a substantial growth percentage for investors.
NTPC SHARE PRICE TARGET 2024
|NTPC SHARE PRICE TARGET 2024||Maximum Price||Minimum Price|
NTPC LTD is expected to continue showing growth in 2024, with some fluctuations throughout the year. In January 2024, the maximum and minimum prices are predicted to be ₹280.78 and ₹332.63, respectively. This wide range suggests a potentially volatile start to the year, with a potential growth percentage of over 200% from the minimum price.
As the year progresses, the share price is expected to stabilize somewhat. In October and November 2024, the maximum price is predicted to reach ₹413.09 and ₹433.74, respectively, indicating a significant growth percentage for investors. The minimum prices for these months are also relatively high, at ₹317.76 and ₹333.65, respectively.
NTPC SHARE PRICE TARGET 2025
|NTPC SHARE PRICE TARGET 2025||Maximum Price||Minimum Price|
NTPC LTD’s share price is predicted to continue its growth trend in 2025, with some fluctuations throughout the year. The maximum price for the year is predicted to be ₹536.66 in December, whereas the minimum price is expected to be ₹311.42 in May. This suggests that the stock may show some volatility throughout the year, with a potential growth percentage of over 70% from the minimum price.
In September and October, the maximum prices are predicted to reach ₹463.88 and ₹491.72, respectively, indicating a healthy growth percentage for investors. The minimum prices for these months are also relatively high, at ₹356.83 and ₹378.24, respectively.
NTPC SHARE PRICE TARGET 2026 TO 2030
|NTPC SHARE PRICE TARGET BY||Maximum Price||Minimum Price|
NTPC LTD share price is expected to fluctuate between ₹375.66 and ₹262.96 in the year 2026, indicating a potential decrease in share price from the previous year. In 2027, the share price is expected to range from ₹319.31 to ₹223.52, showing a further decline. However, the years 2028 to 2030 depict an upward trend in the share price with a maximum target of ₹1,314.82 and a minimum target of ₹402.33 in 2028 and 2030, respectively. This indicates a significant growth percentage in the share price, with a bullish market sentiment towards the company. Overall, investors can expect some volatility in the short term but a potential uptrend in the long term, especially in the years 2028 to 2030.
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FINANCIAL STRENGTH OF NTPC LTD (2019 TO 2023)
|Year||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
|Sales +(Rs crore)||100,287||109,464||111,531||132,669||176,207|
|Expenses +(Rs crore)||77,576||77,863||77,484||92,301||128,891|
|Operating Profit(Rs crore)||22,710||31,601||34,047||40,368||47,316|
|Other Income +(Rs crore)||2,818||8,194||5,017||4,803||2,550|
|Profit before tax(Rs crore)||11,255||21,250||17,390||22,007||23,917|
|Net Profit +(Rs crore)||14,034||11,902||14,969||16,960||17,121|
|EPS in Rs||13.88||11.72||15.09||17.20||17.44|
|Dividend Payout %||44%||27%||41%||41%||42%|
Over the past five years, UltraTech Cement Ltd has shown a consistent upward trend in its sales, reaching Rs. 176,207 million in March 2023, signifying its ability to attract and retain customers in a competitive market. The company has also effectively managed its expenses, with operating profit rising to Rs. 47,316 million in the same period. Although the operating profit margin (OPM %) experienced slight fluctuations, it remained robust, ranging from 23% to 31% during the period under review.
Additionally, the company’s other income has varied over the years, reaching Rs. 8,194 million in March 2020 but declining to Rs. 2,550 million in March 2023. Further investigation into the factors influencing this fluctuation would be essential to assess its impact on the overall financial performance.
The interest expenses have been relatively stable, while depreciation costs have increased, potentially indicating investments in fixed assets or technological advancements to support the company’s growth strategy.
Despite fluctuations in the tax rate, the company’s net profit has generally shown growth, with a significant increase from Rs. 14,034 million in March 2019 to Rs. 17,121 million in March 2023. The earnings per share (EPS) have followed a similar trajectory, rising from Rs. 13.88 to Rs. 17.44 over the same period.
The company has maintained a relatively healthy dividend payout ratio, with a range of 27% to 44% during the last five years. This suggests a commitment to rewarding shareholders while reinvesting a portion of profits for growth and expansion.
In conclusion, UltraTech Cement’s financial performance showcases consistent revenue growth, prudent cost management, and a favorable net profit trend. Despite certain fluctuations, the company’s financials demonstrate its resilience in a dynamic market. As investors consider their options, a comprehensive analysis of the factors affecting the company’s performance would be crucial for making informed decisions.
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NTPC LTD SHARE PRICE TARGET BY EXPERTS:
- – Sharekhan suggests a buy call on NTPC Ltd with a target price of Rs. 200.(May 25, 2023)
- – Motilal Oswal also recommends a buy call on NTPC Ltd, with a target price of Rs. 210.(May 29, 2023)
The maximum share price target of NTPC LTD in 2028 is Rs. 574.76
The maximum share price target of NTPC LTD in 2029 is Rs. 1180.65
The maximum share price target of NTPC LTD in 2030 is Rs. 1314.82
POINTS TO NOTE WHILE INVESTING IN NTPC LTD SHARES:
– The stock is currently offering a favorable dividend yield of 3.31%.
– The company has consistently maintained a healthy dividend payout ratio of 41.0%.
– Debtor days have shown improvement, decreasing from 75.7 days to 59.7 days.
– Over the last 3 years, the company has reported a low return on equity of 12.4%.
– There are indications that the company might be capitalizing the interest cost.
CONCLUSION: NTPC LTD
Based on NTPC LTD’s financial performance over the previous five years, both sales and profit have steadily increased, and PAT has also increased in a positive manner. The company’s operating and net profit margins have consistently increased, a sign of high operational efficiency. Over time, the company has seen positive percentage increases in sales growth and profit growth, with a notable increase in FY 2022. It’s crucial to remember that the company’s costs have climbed along with sales, therefore this pattern needs to be regularly watched. In general, NTPC LTD has had strong financial performance, giving it a potentially alluring investment possibility for those seeking long-term gain. However, investors should conduct additional research before making any investment decisions.
NTPC’s performance seems promising. With buy calls from Sharekhan and Motilal Oswal and target prices ranging from Rs. 200 to Rs. 210, the stock is garnering positive attention from the experts. Additionally, the company’s dividend yield of 3.31% and healthy dividend payout of 41.0% are attractive to investors seeking income. However, it is worth noting that the company’s low return on equity (ROE) of 12.4% over the last 3 years warrants attention and requires further examination to understand the factors influencing it. As always, investors should conduct thorough research and analysis before making any investment decisions.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.