This PSU stock could lead India's nuclear development, HSBC says after upgrade

Shares of state-run NTPC Ltd. gained as much as 2% on Thursday, September 11, after brokerage firm HSBC upgraded the stock.

HSBC raised its rating on NTPC to ‘Buy’ from ‘Hold’ and lifted the target price to ₹400 per share, compared with ₹385 earlier.

The brokerage wrote in its note that NTPC remains at the forefront of power generation and management in India, with emerging opportunities in battery storage and nuclear energy now part of its growth pipeline.

According to HSBC, the company’s recent underperformance was largely due to slower power demand and execution delays, but these headwinds are expected to reverse.

Power demand growth is likely to benefit from a low base in FY25, while execution challenges are easing, with two thermal plants totaling 1.3 gigawatts already commissioned.

HSBC also mentioned that a significant portion of NTPC’s planned capital expenditure of ₹7 lakh crore through 2032 will come under the regulated tariff mechanism, providing visibility on returns.

The brokerage further said that NTPC is well-placed to lead the country’s nuclear power development push.

Out of 27 analysts covering the stock, 24 have a ‘Buy’ rating, two have a ‘Hold’, and only one has a ‘Sell’.

NTPC shares were trading 1.44% higher at ₹330.25. Despite today’s gains, the stock has delivered negative returns on a year-to-date basis.

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