NTPC share price hits fresh all time high; should you book profit? Here's what experts say

NTPC share price extended its record setting run for the second consecutive session as it rose almost 3 per cent to hit its fresh all time high of 325.60 in morning trade on on Friday, January 5. NTPC share price opened at 322.50 against the previous close of 317.10 and climbed 2.7 per cent to its record high of 325.60.

The stock, however, pared gains soon and traded 1.55 per cent higher at 322 around 9:40 am. In the previous session, the stock gained 3.5 per cent. NTPC share price has jumped 90 per cent in the last one year while in the last six months, it has gained about 63 per cent. Brokerage firm expects this stock to rise even further.

Axis has initiated coverage on the stock with a buy call, setting the target price at 345. "We initiate coverage on the stock with a buy rating and value the company by using a SoTP based target price of 345. We value the company’s conventional thermal business at 1.8 times P/BV (price to book value ratio) on its FY26 consolidated regulated BV.

Moreover, we value its RE (Renewable Energy) business at EV/EBITDA of 12 times on FY26 EBITDA, which is a premium multiple against the industry average of 9 10 times to account for growth tailwinds and evolving RE RTC (renewable energy round the clock) optionality," Axis said. Also Read: Axis Securities is positive about the stock mostly because of the company's healthy growth prospects.

Moreover, the company is expected to be a key beneficiary of growing power demand in the country due to its strong position in thermal power and plans to significantly increase renewable energy capacity. Axis pointed out that 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 brokerage firm underscored that NTPC has an ambitious target of 60 GW of renewable capacity (RE) by FY32 from the current 3.3 GW. Presently, nearly 7.3 GW of RE projects are under construction and it has secured tenders and bilateral tie ups for another 10 GW of RE capacity, creating a visible pipeline of more than 20 GW in the near term.

Also Read: While the fundamentals make NTPC an attractive call for the long term, technical analysts suggest some profit booking at this juncture could be a good move. Jigar S. Patel, Senior Manager of Equity Research at observed that at the current juncture, NTPC might face resistance of 325–330 since there are few Fibonacci ratio clusters near said zone.

"One can opt for profit booking in the zones of 320–330 and wait for meaningful corrections. On the flip side, a decisive close above 330 might take the counter near 350–360 levels," said Patel. Read all market related news Livemint tops charts as the fastest growing news website in the world to know more.

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