NTPC is Axis Securities’ pick of the week. They have a Buy rating on the stock with a target price of Rs 365 per share. This implies over 9% upside from current levels. The share price of NTPC has corrected around 4% in the last one month and Axis Securities recommends using this price correction as a good entry point.
Here is a look at the key reasons why Axis Securities is bullish on NTPC-
Axis Securities on NTPC: Capacity expansion
The NTPC Group’s installed capacity grew by 3,972 MW led by 3,312 MW of renewable capacity compared to only 660 MW of thermal capacity. This, according to Axis Securities, is one of the key factors powering the Buy recommendation. The total under-construction capacity stands at over 33,750 MW and the company targets 21 GW over FY26-FY27.
Axis Securities on NTPC: Higher commissioning target
NTPC has a target of 25 GW of Thermal capacity additions. 16.9 GW is already currently under construction and the FY26-FY27 commissioning target is now revised to 3.58 MW and 1.46 GW in FY26 and FY27 from the earlier target of 1.46 GW each in FY26 and FY27. This is another encouraging aspect, as per Axis Securities.
Axis Securities on NTPC: Ambitious renewable energy target
Another big trigger for Axis Securities is NTPC’s ambitious target of 60 GW of renewable energy capacity by 2032. Currently, it has 6.8 GW of installed RE capacity, 18 GW of contracted and awarded capacity additional pipeline. Of this, 14.6 GW is under construction. In FY25, its renewable arm, NTPC Green‘s capacity stood at 5.9 GW. The company now plans to add 6.5 GW of RE capacity in FY26. FY27 and onwards, it will target an 8 GW addition per annum. This also adds to the factors supporting investment in NTPC, as per Axis Securities.
Axis Securities on NTPC: Focus on Nuclear Power
In January, the power major has incorporated NTPC Parmanu Urja Nigam. a wholly owned subsidiary to explore advanced nuclear technologies.
Apart from this, NTPC has an ambitious target to develop 30 GW of nuclear projects. This is in line with the national target of 100 GW of nuclear capacity by 2047. The government has also approved ASHVINI, a JV to build, own and operate nuclear power plants. Further, the company is also in the process of executing the Mahi Banswara Rajasthan Atomic Power Projects, comprising 4×700 MW reactors.
All these factors indicate significant capacity addition for NTPC, especially in the renewable power sector. This, according to Axis Securities, supports the investment rationale for the company amid a host of power sector stocks that have been in focus recently.