NTPC share price rose by more than 1% to a price of Rs. 324.30.
Its stocks are still priced attractively with P/E ratios below the industry average, with a healthy balance sheet.
NTPC has remained a defensive large-cap stock on account of its consistent dividends and positive analyst recommendations.
NTPC share price demonstrated an increasing trend in the last trading session, as investors continue to remain optimistic about India's biggest power company. Currently, the stock was seen at Rs. 324.30, an increase of 1.12%, as investors continue to show keen interest despite market consolidation. Despite market conditions, the stock continues to retain its position as the biggest large-cap defensive stock.
The stock opened at Rs. 321.05, marginally higher than the previous close of Rs. 320.70 and remained range-bound in the positive domain. NTPC touched an intra-day high of Rs. 324.75 and a low of Rs. 320.25, thereby reflecting stable volatility. VWAP at Rs. 323.57 indicates that trading activity remained around the present levels. Here’s an in-depth analysis of NTPC share price based on Moneycontrol data.
NTPC stock trading volume reported was 2.6 million shares, with the total value traded at Rs. 8,428.65 lakh. Though this figure falls short when compared to the average daily trading volume of over 7 million shares.
The average delivery % over the past 20 days stands at 65.48%, which indicates that the buying interest lies with the investors, who are not looking to trade the stock. Since NTPC shares have a beta value of 1.02, it is moving almost in tandem with the market. Therefore, it is apt for investors seeking lower beta portfolios. Its immense market capitalization of Rs. 3.14 lakh crores also reinforces this concept.
NTPC share price chart on TradingView shows gains of 1.03%:
NTPC is a fairly valued firm. The P/E ratio of the stock, which stands at 13.24 for the trailing twelve months, is quite low compared to the industry P/E, which is 26.67. The difference in P/E ratio itself reveals the relatively undervalued position of NTPC in the power industry. The price/book ratio, which is 1.87, corresponds roughly to its previous tally.
The company's price is justified based on its TTM EPS of Rs. 24.49, marking an increase of 7.59% from the previous year. The book value of Rs. 173.54 per equity also forms a solid foundation of support.
Despite being a dividend-focused investment, NTPC share price is a preferred investment destination for income investors owing to its consistent dividend payment record. As of now, the stock is providing a dividend yield of 2.58%, which is quite attractive for a PSU large cap stock.
From a historical performance point of view, the 52-week high for NTPC is Rs. 371.45, and the 52-week low is Rs. 292.80. Despite the present fall from the peak, it remains strong above the important levels of support. The all-time high of Rs. 448.45 points out towards wealth creation, even during the present phase of consolidation.
Analyst views concerning NTPC stock remain optimistic. Based on the views of approximately 25 analysts on Moneycontrol, the stock is given an ‘Outperform’ recommendation, and around 72 % of analysts recommend ‘buying’, while around 12 % recommend ‘Outperform.’ Only a handful of analysts have advised holding or selling.
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The immediate resistance levels are at Rs. 325.43 (R2) and Rs. 327.22 (R3), while the main support is at Rs. 321.28 (pivot point) and Rs. 318.92 (S1). If NTPC is above Rs. 320, the shorter-term trend is positive.
On the whole, the NTPC share price can be said to incorporate both stability, value, and growth. Even though there may not be much upside in the stock in the short term, it is still offering reliability and value for the money.
1. Why has the NTPC share price increased today?
NTPC share price saw an increase as it witnessed increased buying interest based on favorable fundamentals and valuation moves. NTPC also experienced support based on its defensive nature during the market consolidation phase.
2. Is NTPC a low-risk stock?
Yes, NTPC is considered to be a less risky stock, given its large market capitalization, steady cash flows, regulated business, and long track record. Its beta value, close to 1, indicates that the stock does not vary much relative to the market.
3. How attractive is NTPC’s Valuation relative to the Sector?
Currently, the stock has a lower P/E ratio compared to the overall power industry average. As a result, the stock can be considered fairly valued and even more valuable than most other stocks in the same industry.
4. Is the dividend return of NTPC attractive?
Income investors prefer NTPC because of its regular dividend payments. The stock has a dividend yield of approximately 2.6%, offering regular income while preserving capital.
5. What is the near-term outlook for NTPC shares?
The immediate prospects for NTPC stocks. As long as NTPC remains above the Rs. 320 level, the market trend will likely remain stable in the short term. Although there may not be much upside, it appears the stock will continue to perform well.
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