NTPC: PSU Reports 1.8% Drop In Profit, Rs 2.5/Sh Dividend; Buy?

Large cap Maharatna CPSE NTPC Ltd today announced a marginal decline in its consolidated net profit for the quarter ended December 31, 2024 owing to increased current and deferred taxes. The company announced its net profit at Rs 5063 crore, indicating a decline of 1.8% for the quarter ended December 31, 2024 as against Rs 5155 crore in the corresponding quarter of last year. The PSU said its installed capacity stood at 76,598 MW as of December.

The Board of NTPC today recommended second interim dividend of Rs 2.5 per share (i.e. 25%) on the face value of Rs 10/- each for the financial year 2024-25. The company fixed January 31, 2025 as the record date for second interim dividend. The company has a market capitalisation of Rs 3,13,881.08 crore. Last trading price of NTPC Ltd shares stood at Rs 323.70 apiece on Bombay Stock Exchange (BSE). Check key details below:

NTPC: PSU Reports 1.8% Drop In Profit, Rs 2.5/Sh Dividend; Buy?

NTPC Recommends Second Interim Dividend

As per the exchange filing of NTPC dated January 25, 2025, “Board of Directors in its aforesaid meeting decided, inter alia, to pay second interim dividend at the rate of 25% (Rs 2.5/- per share) on the face value of paid-up equity shares of Rs. 10/- each for the financial year 2024-25. The date of payment/ dispatch of dividend warrant shall be 18 February 2025.”

NTPC Fixes Record Date For Interim Dividend

The exchange filing added, “we wish to inform that, pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has fixed Friday, 31st January 2025 as the “RECORD DATE” for the purpose of ascertaining the eligibility of the shareholders for payment of second interim dividend for the Financial Year 2024-25.”

NTPC Q3 Results

The company declared its consolidated revenue from operations for the quarter ended December 31, 2024 at Rs 45,053 crore, up 5.2% as against Rs 42,820 crore in the similar quarter last year. The Maharatna firm declared a surge of 20.3% in its EBITDA for the quarter under review to Rs 13,667 crore from Rs 11,362 crore declared in the year ago quarter. Margins announced at 30.3% for December 31, 2024 quarter as compared to 26.5% in the similar quarter of last year. The surge in EBITDA took place due to an annual fall of 21% in other expenses.

NTPC Shares Performance

The 52-week high price of NTPC shares on BSE stood at Rs 448.30 per share (as on 30/09/2024) and 52-week low price is Rs 296.85 per share (as on 13/01/2025), respectively. NTPC shares tumbled by 0.83% in last 1-week, slipped 17.54% in last 6-months, and gained 4.71% in last 1 year. In last 2-years, NTPC stock zoomed 95.29% and rose 144.21% in last 3-years. NTPC’s return on equity stood at 12.36%.

NTPC Dividend History

NTPC declared a total of 43 dividends since February 25, 2005. In past 1-year, NTPC declared an equity dividend amounting to Rs 8.00 per share. At the current share price of Rs 323.70 apiece, NTPC offers shareholders a dividend yield of 2.47%, according to Trendlyne.

NTPC Bonus Share History

It gave 1 bonus since March 19, 2019. The PSU’s last Bonus was announced in the ratio 1:5 with ex-date fixed as March 19, 2019. Shareholders of NTPC got 1 bonus share for every 5 shares held in 2019.

Should You Buy NTPC Shares?

Leading brokerage firm InCred Equities recommended add call to NTPC shares with a target price of Rs 385 per share. According to the analyst, “the renewables segment, led by NGEL’s extensive pipeline, is valued at the current market price. This translates to a target price of Rs 385 or 25 per cent upside from the CMP. We assign an ADD rating to NTPC. Ventures in green hydrogen (5GW), nuclear power (2.8GW), & PSP (8GW) provide further upside potential. Downside risks: Delay in plant commissioning, changes to CERC regulations and reduction in NGEL’s valuation.”

On the other hand, renowned brokerage house Macquarie issued an ‘outperform’ call on NTPC shares with a target price of Rs 475 per share.

NTPC About

NTPC is India’s largest integrated power company. Its goal is to light every corner of the country and building a sustainable future for all. As a leader in the power sector, NTPC is committed to generating efficient and affordable power, aiming to accomplish 130 GW by 2032. It has a diverse fuel mix, integrating fossil fuels, gas, hydro, nuclear, and renewable sources to minimize our carbon footprint. Established in 1975, NTPC played a key role in India’s economic growth for nearly five decades. With a commitment to operational excellence and adherence to global standards, the company seeks to light every fourth bulb in the country, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Macquarie and Incred Equities. Moneydaily.in, the Author, and the respective Brokerage Houses will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in recommends its users to check with certified experts before making any investment-related decision.