NTPC Limited, India’s leading power-generation PSU, is navigating dual headwinds. The company is undergoing shareholder voting for its Rs 18,000 crore bond issuance, even as its shares have slipped following recent block deals. These developments come hot on the heels of NTPC’s Q4 FY25 performance, which showed solid earnings growth. Investors are weighing expansion funding needs against short-term market pressure.
NTPC Share Slides After Block Deals
On June 24, 2025, NTPC’s stock fell a sharp 4%, closing at ₹321.30 on the BSE, following a 0.9% equity transfer via block deals. The buyer and seller identities remain undisclosed, adding uncertainty to the trade.
This sharp dip contrasts with Monday’s modest 0.49% drop to ₹333.70 amid a weak session, where NTPC underperformed its peers (Tata Power +0.74%, Torrent Power +1.91%).
Market Snapshot: Key Financial Metrics
| Metric | Value |
|---|---|
| June 24 closing price | ₹321.30 (–4%) |
| June 23 closing price | ₹333.70 (–0.49%) |
| 3‑month return | –5.3% |
| 6‑month beta | 0.87 |
| P/E ratio | ~13.4× |
| Earnings/share (EPS) | ₹24.16 |
| Market cap | ₹3.14 lakh crore |
Bond Vote: Capital Raise Underway
Starting June 24, NTPC initiated voting for its proposal to raise Rs 18,000 crore via private placement of non-convertible debentures (NCDs)/bonds. Funds will bolster its capital expenditure across thermal, hydro, wind, solar, and refinancing initiatives.
The Board had approved this in its June 21 session, with terms—including maturity, coupon, tranche breakdown—set to be finalized per tranche.
Why it matters:
- Raises funds without diluting equity.
- Could heighten debt and interest costs.
- Market will closely monitor subscription success, coupon rates, and deployment timelines.
Results: Strong Profit but Market Lukewarm
In Q4 FY25, NTPC reported a 22% YoY jump in consolidated net profit to ₹7,897 crore, with revenues rising 3.2% to ₹49,834 crore. The board also declared a final dividend of ₹3.35/share. For FY25 overall, PAT reached ₹19,649 crore, up 9% YoY, with revenues of ₹1.70 lakh crore.
Despite healthy earnings, the stock’s negative ~5% return over the past three months suggests investors are cautious, especially in light of refinancing pressure.
Investor Outlook: Weighed by Deals & Bonds
- Block deal spike (~0.9%) triggered the June 24 sell-off—such moves typically indicate institutional repositioning.
- The upcoming bond issue increases NTPC’s liabilities, which may cap stock performance until execution clarity emerges.
- On-ground fundamentals are sound: stable cash flows, strong Q4 earnings, and robust EBIDTA margins.
Analyst sentiment:
Historical brokerage coverage is largely bullish, with targets averaging ₹430–450, citing NTPC’s infrastructure expansion and renewable energy push.
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NTPC Share Price Target: Brokerages Offer Diverging Views
Antique Stock Broking has issued a ‘Buy’ recommendation on NTPC shares, setting a target price of ₹409 per share, which implies a potential upside of 23% over the long term. The brokerage remains optimistic about NTPC’s growth prospects, particularly its expansion in the power and renewable energy sectors.
In contrast, Kotak Institutional Securities has maintained a ‘Sell’ rating on the stock, assigning a fair value of ₹320 per share, signaling a possible 3% downside from current levels. Kotak’s cautious stance reflects concerns around valuations and capital expenditure pressures in the near term.
