Navratna Power Stock Rallies 8% On January 20; PL Finds NLC India Attractive, Sets Rs 262-275 TP

Navratna company under the Coal Ministry, NLC India witnessed a huge rally on Saturday. The stock zoomed by nearly 8% on BSE. Prabhudas Lilladher analyst have selected the stock as a top pick for the day and recommended buying for a target price of Rs 262-275. The stock looks attractive for the brokerage.

At the time of writing, NLC shares traded at Rs 247.70 apiece, up by 6.70% on BSE with a market cap of Rs 34,333.12 crore. The midcap advanced by at least 7.7% to hit an intraday high of Rs 250 apiece.

Apart from giving hefty returns to its shareholders, NLC also holds a strong track record of paying consistent dividends. In the last 12 months, NLC declared 35% dividends amounting to Rs 3.5 per share. Currently, it has a dividend yield of 1.42%.

Giving a technical input, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said, "The stock has witnessed a decent rally in the last 3 months to indicate a strong uptrend resisting near the peak level of 266 and thereafter, with a short correction seen, has formed a higher low pattern on the daily chart taking support near 215 levels."

The analyst further said, "With a pullback seen, it has regained strength with the RSI also cooling off from the overbought zone and currently is well placed indicating a trend reversal to signal a buy."

Further, Koothupalakkal said, currently, with a bullish candle formation, the chart looks attractive and "we suggest buying this stock for an upside target of 262-275 in the coming days keeping the stop loss of 230 level."

NLC is a multibagger! In the past six months, the stock zoomed by 109% on BSE as of now, while in a year, the stock has gained by over 206%.

Last week, NLC India awarded the EPC contract to BHEL for setting up a Pit Head Green Field Thermal Power Project of 2,400 MW capacity (3 x 800 MW - Stage I) based on Ultra Super Critical Technology at Jharsuguda District in the Odisha State after inviting competitive tenders under the ICB route.

As per the regulatory filing, the EPC contract scope includes Engineering, Manufacturing, Supply, Erection and commissioning of equipment such as boilers, turbines, generators, balance of plants, FGD and SCR for 3 X800 MW- 2400 MW Stage -I. The entire power of 2400 MW is tied up with the states of Tamil Nadu, Odisha, Kerala and Puducherry and PPAs already executed. The first unit of the project is scheduled for commissioning in FY 2028- 29.

Being a Pit Head Thermal Project, the variable cost will be Competitive and NLC India will be generating & providing low-cost power to its Beneficiaries, it said.

For more than six glorious decades, NLC India Limited has been a forerunner amongst the Public Sector Enterprises in the country in the energy sector, contributing to a lion's share in lignite production and a significant share in thermal and renewable energy generation.

A pioneer among the Public Sector Undertakings in the energy sector, NLCIL operates 3 opencast Lignite Mines with total installed capacity of 28 Million Tonnes Per Annum (MTPA) at Neyveli, one opencast Lignite Mine at Barsingsar in Rajasthan with an installed capacity of 2.10 MTPA and an open cast coal mine at Talabira in Odisha with an installed capacity of 20 MTPA.

NLCIL has big dreams to become a 17,171 MW company by 2030. Towards realizing this dream, NLCIL is already in expansion mode. NLCIL's JV with the Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) is setting up a 3x660 MW coal-based Thermal Power Station at Ghatampur in UP. Talabira-II & III Coal Mine (20 MTPA) in Odisha. Unit#1 was synchronised with the grid on December 4, 2023.

Also, NLCIL is aiming to achieve a total Renewable energy capacity of 6031MW by 2030.

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