NTPC shares jumped over 2 per cent in the morning trade on Tuesday after Citi upgraded NTPC to ‘buy’, citing capacity additions, improving and assured return on equity, low valuations and no regulatory uncertainty till FY19.
NTPC shares jumped over 2 per cent in the morning trade on Tuesday after Citi upgraded NTPC to ‘buy’, citing capacity additions, improving and assured return on equity, low valuations and no regulatory uncertainty till FY19. Earlier, Citi group had ‘neutral’ rating on NTPC stocks.
At 10.45 am, NTPC was trading 2.35 per cent higher at Rs 115.30. It opened at Rs 113 and had touched a high and low of Rs 116 and Rs 113, respectively, in trade so far. Sensex was up 0.14 per cent at 24,929.
According to Eikon data, NTPC is trading at price-to-book value of 1.04 vs 1.4x of rivals. Stocks has 20 buy, nine hold and five sell ratings.
On a year-to-date basis, share price of the thermal power giant NTPC declined 20.89 per cent to Rs 112.65 on September 8. Sensex declined around 10 per cent during the same period.
However, government’s plan to sell stake in the company widely expected to remain as key overhang on the stock.
For the quarter ended June 2015, the company posted net profit of Rs 2135.35 crore, down 2.99 per cent, against Rs 2201.20 crore in the corresponding quarter a year ago.
(With inputs from Reuters)
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