NTPC stock gains on extension of joint development pact with UP state govt utility

NTPC stock gained in early trade on September 15, after the signing of a supplementary joint venture agreement with UP state government utility.

At 12:32 pm the NTPC stock was trading marginally higher, up 0.12 percent at Rs 238.12 on NSE.

India’s largest PSU power generation company NTPC signed a supplementary joint venture agreement to an earlier agreement forged with Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL) in February 2008. According to a corporate filing dated September 14, NTPC and UPRVUNL signed the JV agreement in 2008 for the formation of a joint venture company Meja Urja Nigam (MUNPL).

Follow our live blog for all the market action

The supplementary joint venture agreement has been signed to take up joint development of Meja Stage-II (2X660 MW), Obra ‘D’ Thermal Power (2X800 MW) & Anpara ‘E’ Thermal Power Plant (2X800 MW) projects, subject to techno commercial viability and necessary clearance and power purchase agreement (PPA) in place.

Brokerage Views

Brokerage firm Sharekhan has given a ‘buy’ rating to the NTPC stock with a target price of Rs 260 per share in a report dated August 24, 2023. The report added: “Anticipation of a rise in peak power deficit could drive re-rating of NTPC’s core thermal power business. Thus, NTPC’s plan to add commercial thermal power capacities of ~10 GW over three years seems to be a step in the right direction.”

Stock Performance

NTPC stock has given a return of 33.73 percent over the last six months. The benchmark Nifty 50 has given a return of 18.46 percent over the same duration.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.