NTPC Shares Decline Over 2% Despite Rise in Q2 Profits

NTPC Shares Decline Over 2% Despite Rise in Q2 Profits

VoM News Desk | October 30, 2023 | 11:26 AM IST | Breaking News | Follow on Google News

NTPC Shares Decline Over 2% Despite Rise in Q2 Profits

NTPC Shares Decline Over 2% Despite Rise in Q2 Profits

NTPC, the state-run power generator, reported a 16.6% rise in its consolidated net profit for Q2FY24, reaching ₹3,885 crore compared to ₹3,331 crore in the corresponding period of the previous year. Despite this, the company’s revenue from operations fell slightly from ₹41,015 crore to ₹40,875 crore in the year-ago period.

The NTPC board also approved the first interim dividend of ₹2.25 per share for FY 2023-24 on the face value of paid-up equity shares of ₹10 each, with a payment/dispatch date of November 23, 2023.

Despite the positive results, NTPC shares experienced a decline of 2.45% to ₹230.75 apiece on the BSE.

Brokerages Maintain Bullish View on NTPC and Raise Target Price

Several brokerages retained their bullish view on NTPC and increased their target price following the Q2 results announcement. Antique Stock Broking raised its target price by 6% to ₹274 per share, maintaining a ‘Buy’ rating on NTPC. The brokerage cited factors such as improved ESG scores and new capacity additions as drivers for re-rating.

Nuvama Institutional Equities maintained a ‘Buy’ call on the stock and raised the target price to ₹274 per share, citing the company’s expectations of 15GW of renewable energy capacity by FY26 and the transition to a balanced portfolio.

JM Financial also retained a ‘Buy’ rating, increasing the target to ₹270 per share, as it revised its estimates for FY25 and rolled them forward to FY26, considering NTPC’s continued growth momentum.

At 10:40 am, NTPC shares were trading at ₹233.30 apiece on the BSE, 1.37% lower.

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