Company Update - NTPC Ltd - ICICI Direct

NTPC is increasing its presence in the renewable segment.

- NTPC has set aggressive renewables long term capacity addition target of 60000 MW by 2032, which was earlier pegged at 30000 MW. The company currently has 6500 MW of renewable projects in various stages. Out of this, 1600 MW has been commercialised and ~3500 MW will come under commissioning in the next 18 months. The company expects to spend ~40% of total capex planned for FY22, FY23 on renewable projects. This share is going to further increase from FY25 beyond, which indicates very strong addition in renewable portfolio from FY24 onwards The company is expected to generate IRR's in the range of 11-12% despite low renewable tariffs, which we believe is commendable

- The company may also unlock value in its renewable arm via an IPO over FY23-24, which will further provide a fillip to valuations

- The company has also started making inroads in other avenues of green energy like hydrogen. NTPC awarded project of 'Standalone Fuel-Cell based Micro-grid with hydrogen production using electrolyser' at NTPC Simhadri. On the other hand, the company recently issued tenders and has invited online bids from electrolyser technology providers, with whom the company intends to participate in upcoming tenders on green hydrogen. This tender intends to select electrolyser technology provider(s) for two years for polymer electrolyte membrane (PEM) technology of 400 megawatt (MW) and non-PEM technology of 600 MW

For details, click on the link below: Link to the report

Shares of NTPC Limited was last trading in BSE at Rs. 157.00 as compared to the previous close of Rs. 155.95. The total number of shares traded during the day was 506718 in over 3221 trades.

The stock hit an intraday high of Rs. 158.40 and intraday low of 156.00. The net turnover during the day was Rs. 79593968.00.

Source : Equity Bulls

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