Stocks

NTPC hits over 3-month low

Reuters | Updated on: Nov 05, 2018
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Shares of power producer NTPC Ltd fall as much as 3.99 per cent to Rs 151.70 intraday , their lowest since July 26. It ended lower by 2.72% at Rs 1533.60 on the BSE today.

The power producer's Q2 profit fell marginally to Rs 2,426 crore, missing analysts estimates, even as its total expenses rose 17.5 per cent to Rs 19,851 crore.

HSBC says that NTPC's Q2 earnings were hurt on coal shortage driven by under-recoveries but the company management expects that the situation would improve in H2. The analysts retain the target price of Rs 210

“This is a peak season for consumption of electricity, so if coal stocks are down, it will impact power production and impact revenues and profits. Govt is expected to take measures to correct the situation, but temporarily, this could impact power stocks,” said a research analyst at HDFC Securities.

NTPC did not immediately respond to comment, while Coal India was not immediately reachable

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NTPC intraday chart

 

 

Published on November 05, 2018

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