Target: ₹345
CMP: ₹317.10
NTPC is the largest power producer forming 17 per cent of India’s installed capacity and 25 per cent of the total generation in FY23. The broad-based economic recovery and infrastructure growth have driven an increase in peak demand, reaching new highs in FY24.
NTPC’s substantial portfolio in conventional power, with a firm cost-plus business model, positions it well in a growing peak power cycle. This structure contributes to stable cash flows and will facilitate growth led by renewable energy. The CEA projects an incremental coal-based power capacity of 47 GW by FY32, in which NTPC will capture the major chunk with its brownfield power projects. The company has about 10 GW of thermal capacity under construction which is expected to get commissioned by FY26.
It will be awarding thermal capacity of 11.2 GW, which will be tendered over the next 12 months. NTPC has an ambitious target of 60 GW of renewable capacity by FY32 from the current 3.3 GW. It has also planned various new ventures to diversify from core operations into various green initiatives, such as green hydrogen, energy storage, Nuclear power, green mobility and RE-RTC power which provides further growth optionality and rerating potential.