The share price of National Thermal Power Corporation (NTPC) slipped nearly 7 percent on Tuesday on profit-booking as the company's consolidated profit suffered a 7.7 percent decline YoY, falling to Rs 3,494.61 crore.
The stock fell as much as 7 percent to Rs 83.05 per share on the NSE. At 1:37 pm, the shares traded at Rs 86.75, down 2.75 percent.
The company's earnings were overall better-than-expected. It reported a 7.4 percent YoY growth in the standalone net profit to Rs 3,504 crore.
Revenue from operations for the said quarter stood at Rs 24,677 crore, up 8.4 percent, against Rs 22,764.5 crore YoY.
EBITDA (earnings before interest, tax, depreciation and amortization) stood at Rs 7,181.3 crore against Rs 6,344 crore YoY and EBITDA margin for Q2FY21 stood at 29.1 percent against 27.9 percent YoY.
Furthermore, the company also announced a buyback of 19 crore shares at Rs 115 apiece.
It said that it will repurchase 19,78,91,146 fully paid-up equity shares of the face value of Rs 10 each at a price of Rs 115 per equity share for Rs 2,275.75 crore. The record date for the buyback is set on November 13.
CLSA in its report placed a 'buy' rating on the stock with a target price at Rs 140 per share. It said, "There are visible signs of a rebound and ESG focus gets sharper. Q2 saw 18 percent growth in regulated equity and 23 percent YoY core PAT growth."
Moreover, the company's share of its non-coal generation doubled to 11 percent led by hydro and gas. Further capacity additions will help it expand return-on-equity (RoE) 159 bps over FY20-22.