NTPC shares fall 4% after 0.9% equity changes hands via block deals
This follows NTPC's plan to issue Rs 4,000 crore worth of NCDs via private placement on June 17.
NTPC shares fell 4% following block deals involving 0.9% of its equity, though the buyers and sellers remain unknown. This decline occurred amidst strong trading volumes and precedes a board meeting to consider raising up to Rs 18,000 crore through bond issuance. Despite a strong Q4 net profit, operating performance showed some weakness, with EBITDA and margins declining.
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Q4 Financial Performance
NTPC Share Price Target
Shares of NTPC declined 4% to Rs 321.30 on Tuesday on the BSE after 0.9% of the company's equity changed hands through block deals. The identities of the buyers and sellers were not immediately disclosed.As of 10:07 am, trading volumes remained strong on the NSE, with around 4.78 crore shares worth Rs 1,547 crore changing hands during the session.Last week, NTPC announced a board meeting scheduled for June 21 to consider raising up to Rs 18,000 crore through the issuance of bonds. The proposed fundraising would be executed via secured or unsecured, taxable or tax-free, redeemable, non-convertible debentures (NCDs), subject to shareholder approval.This follows the company's plan to issue Rs 4,000 crore worth of NCDs via private placement on June 17. These bonds carry a coupon rate of 6.89% per annum and will mature on June 18, 2035 — a tenure of 10 years and one day.For the fourth quarter of FY24, NTPC reported a 22.6% sequential rise in consolidated net profit at Rs 5,778 crore. Revenue for the quarter came in at Rs 43,903.7 crore, up 6% quarter-on-quarter.However, operating performance showed some weakness. EBITDA declined 6% QoQ to Rs 11,255 crore, while operating margins slipped to 25.6% from 28.9%.The company declared a final dividend of Rs 3.35 per share, in addition to two interim dividends of Rs 2.50 each paid earlier in the fiscal year.According to Trendlyne, the average target price for NTPC is Rs 418, implying an upside potential of around 29% from current levels. Of the 25 analysts tracking the stock, the consensus rating is 'Buy'.Technically, the Relative Strength Index (RSI) stands at 44.8, indicating neutral momentum. The MACD is at -2.9 and remains below both its signal and center lines, suggesting a bearish trend.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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