NTPC shares rose more than 2% on May 22 due to the company's low valuation and positive analyst commentary. At 2:19 p.m., NTPC was trading 0.72 percent higher at Rs 174.50. So far today, the stock has traded 332,671 shares, a 29.5 percent rise above its five-day average of 256,975 shares.

Elara Securities anticipates increased capital spending for the renewable energy portfolio, which will support NTPC's expansion. The company's stock is trading at a very low valuation of 0.9 times the FY25 price-to-book ratio, which appears appealing, according to the company. Based on 1.5 times regulated equity FY24 price-to-book, the brokerage firm has confirmed its 'buy' call on the company with a target price of Rs 209 due to improved clarity on regulated returns and traction on renewable energy programs.

"With a strong project pipeline," it stated, "we believe NTPC has the potential to achieve its target." By FY24, NTPC intends to install 4,000 MW of standalone capacity and 6,810 MW of group capacity. It has set an aggressive target of 130 GW by CY32, with 60 GW of renewable energy capacity.

Emkay Global Financial Services has also maintained its 'buy' rating on the company, with a Rs 205 target price.

According to Emkay Global, NTPC is predicted to report a 7% compounded annual rise in EPS from FY23 to FY25, with a 12.5 percent return on equity. Over the next three to four years, the business expects to put in operation around 27GW of power projects. As a result, the brokerage firm expects the aforesaid growth profile to continue in the medium run. According to the corporation, improvements in coal plant load factor, capacity increase, and renewable energy monetization are all favorable indicators.

According to NTPC, consolidated income increased 19% year on year to Rs 44,252.92 crore. Revenue from generation and other areas expanded at a solid rate as well, which contributed to sales growth.

EBITDA increased by 4.5 percent to Rs 11,942.40 crore. However, due to increases in fuel costs, employee benefit expenses, and finance costs, the EBITDA margin shrank to 26.99 percent from 30.81 percent a year ago. Even the net profit declined 6% year on year at Rs 4871.55 crore.

NTPC's core generation growth surprise in a seasonally weak quarter, and the company also announced strong renewable capacity addition objectives for the next three years, according to ICICI Securities. It also stated that gross generation and energy sold were 89.7 billion units (BUs) and 77.8 BUs, respectively, which were higher than our predictions of 83.9 BUs and 77.8 BUs. However, the brokerage firm noted that the cost of Rs 4.95 per unit increased revenue.