Tata Power, NTPC, Power Grid Corporation hit 52-week highs

Shares of electric utilities companies such as Tata Power Company (Rs 77), NTPC (Rs 152) and Power Grid Corporation of India (Rs 154) have hit their respective 52-week highs on the BSE in intra-day trade in an otherwise weak market.

These stocks were trading higher in the range of 1% to 2% as compared to 0.80% decline in the S&P BSE Sensex at 01:24 PM.

Post March quarter results (Q4), Tata Power rallied 2%, while NTPC by 9% as compared to an average 3.3% rise in the benchmark index. Power Grid Corporation of India gained 3% after Q4 earnings.

Rating agency Moody’s expects Tata Power's financial position to remain stable, while NTPC's financial position to remain within rating expectation, over the next 12-18 months.

"Tata Power's FY2016 results are in line with our expectations, with revenues growing by 7% year on year and with the improved performance of Coastal Gujarat Power", says Abhishek Tyagi, a Moody's Vice President and Senior Analyst in a note.

NTPC's FY2016 results are in line with our expectations, given they are underpinned by its relatively predictable cash flows from its regulated power business. The fuel cost for NTPC in FY2016 declined by 10% year on year due to lower coal imports and reduction in domestic gas costs, he adds.

Sanjay Jain & Dhruv Muchhal, analysts at Motilal Oswal Securities reiterate ‘buy’ rating on Power Grid Corporation of India with a target price of Rs 178.

Analysts believe that investments in transmission and distribution (T&D) will remain strong because overcapacity in generation demands more flexibility in the grid for wheeling of low cost power to consumption centers.

NTPC Limited