Why NTPC shares are rising for last 10 sessions

Shares of NTPC rallied over 3% to hit the highest level in over a decade in intraday trade on Monday after the state-controlled power producer reported robust earnings in the April-June quarter of the current fiscal. The PSU stock has been rising for the last 10 sessions and gained over 16% during the same period, from ₹186.5 on July 17.  

Continuing its gaining streak, NTPC shares opened 1.3% higher at ₹210 against Friday’s closing price of ₹210 on the BSE. During the session so far, the index heavyweight rose as much as 3.5% to ₹217.45, while the market capitalisation (m-cap) climbed to ₹2.10 lakh crore. On the volume front, 11.7 lakh shares changed hands over the counter compared to two-week average of 14.29 lakh stocks.

The share price of NTPC has jumped more than 44% in the last one year from its 52-week low of ₹150.55 touched on July 29, 2022. The counter has registered a growth of 26.5% in six months period, while it has gained 29% in the calendar year 2023. In the past one month, the stock has risen 14.5%, whereas it added 10% in a week.

At the current level, NTPC shares trade 4% lower than its all-time high of ₹226.88 touched on January 11, 2008. The recent rally in the stock price has helped NTPC reclaim its ₹2 lakh crore m-cap after January 2008.

The power producer on Saturday reported 23% growth in consolidated net profit at ₹4,907.13 crore for the June quarter of FY24 as compared to ₹3,977.77 crore in the year-ago period.

The total revenue from operations fell marginally to ₹43,390 crore from ₹43,561 crore in the corresponding period last year.

During the quarter under review, the NTPC Group generated 103.98 billion units (BU) compared to 104.42 BU in Q1 FY23. NTPC’s standalone gross generation stood at 88.55 BU against 90.49 BU in the year ago period.

Meanwhile, the group added a capacity of around 3,910 megawatts (MW) taking its total installed capacity to 73,024 MW as of June 30, 2023.

On the standalone basis, installed capacity dropped by 81 MW to 57,038 MW in Q1 FY24, from 57,119 MW in the year ago period. The dip in standalone capacity was attributed to one unit of 660 MW at Barh and one unit of 660 MW at North Karanpura as well as 1,210 MW of renewable capacity, and 2,611 MW of renewable capacity transferred to its subsidiary NTPC Green Energy (NGEL).

The company’s coal stations achieved a plant load factor (PLF) of 77.43% against the national average of 70.38% in Q1 FY24. However, coal-based PLF was lower by 3.10% year-on-year and 2.89% quarter-on-quarter.

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