NTPC Stock Surges 3% to 52-Week High After Q1 Results

The Indian benchmark indices started the session lower, but robust gains in the utilities and power sectors helped indices rise higher. BSE Power and BSE Utilities both surged around 1.8%, led by Adani Power and Orient Green Power Company, respectively. 

Following the announcement of the company’s quarterly results, shares of NTPC Ltd received significant buying interest. NTPC Ltd emerged as the top Sensex gainer, soaring more than 3% today. Shares have also reached a fresh 52-week high of Rs 217.45 per share on the BSE. 

Considering the company’s quarterly performance, on a consolidated basis, it reported a marginal decline from Rs 43,177.14 crore registered in Q1FY23, recording total revenue of Rs 43,075.09 crore in Q1FY24. It has reported healthy operating profit growth of 17.8%. When compared to the same quarter last year, the net profit for the first quarter of FY24 climbed 23.79%, from Rs 3,936.82 crore to Rs 4,873.24 crore. 

Shares of NTPC Ltd have gained 14% in the last month, giving returns of more than 40% over the last year! The company previously announced that the second unit of the Barh Super Thermal Power Station, with a capacity of 660 MW, will begin commercial operation on August 1, 2023. As a result, the company’s standalone and group commercial capacity will increase to 57,038 MW and 73,024 MW, respectively. 

The government is making every effort to promote the power industry, taking into account its potential and the country’s electricity demand. The goal of the ‘Pradhan Mantri Sahaj Bijli Har Ghar Yojana – Saubhagya’ is to accomplish universal household electrification in the country by supplying last-mile connectivity and electricity connections to all unconnected households in rural and urban regions. A favourable environment for the industry is being enabled by tailwinds like the government’s emphasis on infrastructure, the real estate sector’s revival, and healthy demand across end-user industries.

Keep a close eye on this stock for the upcoming sessions! 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.