NTPC rallies to near 1-month high after Jefferies raises share price target

Shares of state-run major NTPC surged in early trade Monday after global brokerage Jefferies said that the PSU will benefit from Central Electricity Regulatory Commission (CERC) latest decision. NTPC share price rallied 5.8 per cent to hit the day’s high at Rs 151.35. The CERC, in its draft, allowed energy charges per unit of power to be calculated with a variation of 85 kilocalorie to billing on actual gross calorific value of coal received, giving NTPC the benefit of about 2.7 per cent on its coal cost, Jefferies noted.

“With the regulation overhang behind us, we think NTPC should see a reversal of the recent correction,” the global firm said. Jefferies has raised the target price to Rs 210 from Rs 143.50; while at the same time maintaining a “buy” call n the stock. Notably, the stocks rally marks NTPCs biggest intra-day gain in 6-months.

With the regulation overhang behind, NTPC should see a reversal of the recent correction, Jefferies also said. The global brokerage also raised the target price to Rs 210 from Rs 143.50 and maintained ‘buy’ on the stock.

Meanwhile, after opening higher, the domestic headline indices– Sensex and Nifty– rallied further despite weak macro cues. Sensex is up 307 points to 36,268.18, while the Nifty 50 is trading firmly above the 10,850-level. VEDL share price gained by more than 5 per cent on Monday morning after NGT allowed the firm to resume operations in the Toothukudi copper smelter plant. Jet Airways share price slumped 4.8 per cent after reports that turnaround-man Nikos Kardassis has exited the firm.

NTPC Limited