NTPC Share Price : The state-controlled power generator NTPC’s shares had a stunning increase in intraday trading on Monday, surging over 3% to reach their highest level in more than ten years. The substantial growth followed the company’s strong quarter of earnings from April to June of the current fiscal year.
Since July 17, when the stock was valued at 186.5, the positive trend in NTPC’s stock has remained steady throughout the past 10 days, with a spectacular 16% rise.
Continued Gains Propel NTPC to New Heights
NTPC shares surpassed Friday’s closing price of 210 on the BSE as they began 1.3% higher at 210 in today’s trading session. During the session, the stock kept rising and reached a high of $217.45. The company’s market capitalisation (m-cap) therefore increased to 2.10 lakh crore.
The general market mood for the power producer is still positive, despite the trading volume being somewhat lower than the two-week average at 11.7 lakh shares.
Impressive Year-on-Year Growth
Starting from its 52-week low of 150.55, which was registered on July 29, 2022, the share price of NTPC has increased noticeably by more than 44% over the last year. The stock has been moving up steadily, growing at a pace of 26.5% during the past six months and 29% in the current calendar year, 2023. The stock’s total climb of 10% in only one week has been boosted by a 14.5% increase in the last month alone.
NTPC’s Current Standing and Market Reclamation
The recent rally in the stock price has been crucial in assisting the company regain its 2 lakh crore market capitalization, a feat accomplished after a significant gap since January 2008. NTPC shares are currently trading at a level 4% lower than its all-time high of 226.88 reached on January 11, 2008, but the recent rally in the stock price has been instrumental in helping the company achieve this.
Robust Earnings in Q1 FY24
An impressive 23% increase in consolidated net profit, totaling $4,907.13 crore, was reported in the power producer’s most recent financial results for the first quarter of FY24. In contrast, during the same time period the year before, net profit was $3,977.77 crore.
The excellent profit gain shows NTPC’s outstanding financial performance even though the overall income from operations slightly decreased to 43,390 crore from 43,561 crore in the same period previous year.
Generation Capacity and Recent Additions
Compared to 104.42 BU in Q1 FY23, the NTPC Group generated 103.98 billion units (BU) of electricity during the quarter under review. In comparison to the 90.49 BU produced in the same time last year, NTPC’s standalone gross generation for the period was 88.55 BU.
A further 3,910 MW of capacity were added by NTPC, bringing its total installed capacity as of June 30th, 2023, to an astonishing 73,024 MW.
Dip in Standalone Capacity
On a standalone basis, the installed capacity decreased from 57,119 MW in the same quarter last year to 57,038 MW in Q1 FY24. The transfer of 1,210 MW and 2,611 MW of renewable capacity to NTPC Green Energy (NGEL), a subsidiary of NTPC, as well as one unit of 660 MW at Barh and another unit of 660 MW at North Karanpura, were the main causes of the drop in standalone capacity.
Coal Station Performance
In Q1 FY24, the coal-fired power plants operated at a notable plant load factor (PLF) of 77.43%, above the 70.38% national average. The coal-based PLF was, however, marginally lower by 3.10% year over year and 2.89% quarter over quarter, which should be noted.
The company’s resiliency and development prospects in the power industry are highlighted by its recent stock market performance, good financial results for the first quarter of FY24, and rising generation capacity.
Investors looking for long-term development possibilities in the Indian power business continue to find NTPC to be a compelling participant thanks to its strong profitability and steady rising trajectory.