NTPC share price will be in focus on Friday after brokerage firm Kotak Institutional Equities upgraded its rating on the stock and revised its target price, citing better valuations after the recent selloff.
Kotak Institutional Equities upgraded NTPC shares to ‘Add' from ‘Reduce', but slashed its target price to Rs 355 from Rs 365 earlier.
NTPC share price has corrected 20% since May 2026 and has remained largely rangebound over the past three years. According to the brokerage firm, NTPC's stock price movement in recent years has moved along broader investment narratives of energy security or increased power demand that have remained short-lived on the back of modest earnings growth.
“In our view, the recent price correction may be excessive with valuations having come off (1.5X P/B on 2027E) as improved project execution could aid earnings growth in the medium term,” Kotak Equities said.
NTPC's long-term capacity targets of 151 GW by FY32 and 250 GW by FY37 would entail substantial capex of around Rs 16.9 trillion over the next decade, with approximately 43% allocated to renewable energy. Meanwhile, its under-construction capacity of 35.7 GW is expected to support strong earnings growth in the near term, Kotak Equities said.
The brokerage firm expects the Street will have to adjust to lower PAT growth as bulk of the incremental projects are based on competitive bids and move away from the traditional regulated-return profile where asset capitalization instantly translates into PAT growth.
It acknowledges the higher risk profile of competitively bid projects in comparison to regulated return projects as the risks of generation, interest rates, maintenance costs have a bearing on the return profile.
On Thursday, NTPC share price ended 0.06% lower at Rs 329.95 apiece on the BSE.
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