BUY Maharatna PSU Energy Stock For Rs 455 Target Price, Potential Upside 33% Ahead: ICICI Direct

Brokerage ICICI Direct recommends BUY on Maharatna PSU, NTPC due to its base business which is expected to gain momentum and its strong focus across green energy.

In its research report, ICICI Direct said, "With capacity addition visibility of 20GW of renewables, NTPC has set out an aggressive renewable capacity addition plan to the tune of 16000 MW over FY24-FY26, which will scale up the green portfolio of the company and lead to rerating of the stock. The company will also witness strong growth in regulated equity in the conventional thermal portfolio."

The brokerage estimates NTPC's PAT to grow at 26% CAGR respectively over FY24-26E. We maintain our BUY rating on NTPC. We value the stock at ₹ 455 per share (based on 2.5x FY25 Book Value).

With a Maharatna status, NTPC is India's largest power generation company with a total installed capacity of ~76000 MW at the group level as of FY24.