Citi upgrades NTPC to ‘buy’ from ‘neutral’; shares gain over 1.5%

NTPC shares jumped over 2 per cent in the morning trade on Tuesday after Citi upgraded NTPC to 'buy', citing capacity additions, improving and assured return on equity, low valuations and no regulatory uncertainty till FY19.

Written by FE News Desk

Updated: September 8, 2015 17:21 IST

NTPC shares gained as much as 2.66 per cent after the company received green signal to a power project in Telangana by the Ministry of Environment and Forests.

NTPC shares jumped over 1.5 per cent on Tuesday after Citi upgraded NTPC to ‘buy’, citing capacity additions, improving and assured return on equity, low valuations and no regulatory uncertainty till FY19. Earlier, Citi group had ‘neutral’ rating on NTPC stocks.

The share price of NTPC closed 1.69 per cent higher at Rs 114.55 on Tuesday.

According to Eikon data, NTPC is trading at price-to-book value of 1.04 vs 1.4x of rivals. Stocks has 20 buy, nine hold and five sell ratings.

On a year-to-date basis, share price of the thermal power giant NTPC declined 20.89 per cent to Rs 112.65 on September 8. Sensex declined around 10 per cent during the same period.

However, government’s plan to sell stake in the company widely expected to remain as key overhang on the stock.
For the quarter ended June 2015, the company posted net profit of Rs 2135.35 crore, down 2.99 per cent, against Rs 2201.20 crore in the corresponding quarter a year ago.

(With inputs from Reuters)

This article was first uploaded on September eight, twenty fifteen, at seventeen minutes past eleven in the morning.