National Thermal Power Corporation Ltd. (NTPC) was listed on the NSE on November 5, 2004. In the last five year, its stock has given massive returns of more than 250% to its investors. Will NPTC continue to provide such impressive returns in the future? In this article, we will explore NTPC’s growth potential and the NTPC share price target 2025 to 2050.
About NTPC
NTPC Limited is a government-owned company in India that produces electricity. It was started in 1975. The company mainly uses coal and gas to make power but is also working on solar and wind energy. NTPC is the biggest power company in India and supplies electricity to many states.
NTPC Business Model
- Selling Electricity: NTPC generates electricity from coal, gas, and renewable sources and sells it to states and companies.
- Long-Term Contracts: It signs agreements with state governments to supply electricity at fixed prices for many years.
- Coal Mining: The company owns coal mines and uses the coal for its power plants, reducing costs.
- Consultancy Services: NTPC helps other companies and countries set up and run power plants.
NTPC Fundamental Analysis
| Stock Name | NPTC Ltd. |
|---|---|
| NSE Symbol | NTPC |
| Market Cap | ₹ 337347 Cr. |
| 52W High | ₹ 448 |
| 52W Low | ₹ 293 |
| Stock P/E | 15.3 |
| Book Value | ₹ 174 |
| Dividend Yield | 2.24 % |
| ROCE | 10.5 % |
| ROE | 13.6 % |
| Face Value | ₹ 10.0 |
| Industry PE | 31.5 |
| Price to book value | 1.99 |
| Debt to equity | 1.44 |
| PEG Ratio | 2.24 |
| Quick ratio | 0.75 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 51.10% | 51.10% | 51.10% |
| FIIs | 15.61% | 17.86% | 17.79% |
| DIIs | 30.51% | 27.55% | 27.22% |
| Goverment | 0.10% | 0.11% | 0.11% |
| Public | 2.69% | 3.37% | 3.77% |
| No. of Shareholders | 9,83,606 | 13,93,480 | 41,43,175 |
Key Factors Driving NTPC’s Future Growth
- More Renewable Energy: NTPC is building more solar, wind, and hydropower plants. This helps NTPC reduce its dependence on coal and meet the growing demand for clean energy. Since the government is also pushing for more renewable energy, NTPC has a great chance to grow in this sector.
- More Need for Power: As India’s population and industries grow, more electricity is needed. NTPC, being the largest power producer in India, gets more business as the demand for electricity increases in homes, offices, and factories.
- Upgrading Old Plants: Many of NTPC’s power plants are old, so NTPC is upgrading them with modern technology. This makes them work more efficiently, produce more electricity, and create less pollution, helping NTPC stay competitive.
Pros of Investing in NTPC
- Leading Position in Power Generation: NTPC is a top power producer in India, operating a total of 89 power stations across various states.
- Diversified Business Activities: Besides generating electricity, NTPC is involved in consultancy, project management, energy trading, oil and gas exploration, and coal mining, which provide multiple sources of income.
- Strong Revenue and Profit Growth: NTPC’s revenue has grown at a CAGR of 17%, and its profit has grown at a CAGR of 11% over the last three years.
- High Operating Profit Margin: NTPC has a strong operating profit margin of approximately 30%.
- Low P/B Ratio (Undervalued Stock): NTPC Price to Book Value (P/B) ratio is 1.99, which shows that its stock is trading close to its intrinsic value and may be undervalued.
- Low PE Ratio Compared to Peers: The PE ratio of NTPC is 15.3, which is lower than the industry average of 31.5, making it relatively undervalued and potentially a good investment opportunity.
- Increase in DIIs Holding: DIIs holding increased from 26.76% in December 2024 to 27.22% in March 2025, showing a positive outlook towards NTPC by the DIIs.
Cons of Investing in NTPC
- High Debt: NTPC has a debt-to-equity ratio of 1.44, which could be risky if the company faces financial difficulties.
- Environmental Concerns: NTPC relies heavily on coal to produce electricity, which causes pollution. This focus on coal can lead to criticism and potential future regulations as the world moves towards cleaner energy sources.
- Low Return on Equity (ROCE): NTPC’s 5-year average ROCE is 9.51%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 17.79% in March 2025 from 18.20% in December 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
NTPC Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 9,697 | 9,697 | 9,697 |
| Reserves | 137,326 | 151,013 | 158,575 |
| Borrowings | 222,913 | 237,131 | 242,009 |
| Other Liabilities | 77,253 | 81,437 | 81,950 |
| Total Liabilities | 447,189 | 479,278 | 492,230 |
| Fixed Assets | 240,424 | 258,934 | 259,252 |
| CWIP | 89,179 | 87,664 | 95,612 |
| Investments | 13,935 | 15,885 | 16,500 |
| Other Assets | 103,651 | 116,795 | 120,866 |
| Total Assets | 447,189 | 479,278 | 492,230 |
By the end of 2025, the NTPC share price is expected to be around ₹490 in normal conditions. In a bear market, it might be ₹450, and in a bull market, it may go up to ₹550.
| NTPC Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 450 |
| 2nd Target | 490 |
| 3rd Target | 550 |
In 2026, the NTPC share price is expected to be around ₹600 in a normal situation. In a bear market, it might be ₹550, and in a bull market, it may cross ₹700.
| NTPC Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 550 |
| 2nd Target | 600 |
| 3rd Target | 700 |
According to our analysis, the NTPC share price is expected to be around ₹700 in 2027. In a bear market, it might be ₹600, and in a bull market, it may cross ₹950.
| NTPC Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 600 |
| 2nd Target | 700 |
| 3rd Target | 950 |
According to our analysis, the NTPC share price may trade near ₹800 by 2028; bearish conditions could pull it down to ₹650, while a strong bull run might lift it to ₹1200.
| NTPC Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 650 |
| 2nd Target | 800 |
| 3rd Target | 1200 |
In a normal situation, the NTPC share price is projected to be approximately ₹1100 in 2029. In a bear market, the value may be as low as ₹900, while in a bull market, it may rise to ₹1500.
| NTPC Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 900 |
| 2nd Target | 1100 |
| 3rd Target | 1500 |
In a normal situation, the NTPC share price is projected to be approximately ₹1500 in 2030. In a bear market, the value may be as low as ₹1100, while in a bull market, it may rise to ₹2000.
| NTPC Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 1100 |
| 2nd Target | 1500 |
| 3rd Target | 2000 |
By 2035, the NTPC share price is projected to be around ₹2800 under normal conditions. In adverse markets, the price could fall to ₹2200, while favorable conditions might push it up to ₹6000.
| NTPC Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 2200 |
| 2nd Target | 2800 |
| 3rd Target | 6000 |
Under normal conditions, the NTPC share price might hit ₹6000 by 2040. A bearish trend could lower it to ₹4400, whereas a bullish surge could raise it to ₹18000.
| NTPC Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 4400 |
| 2nd Target | 6000 |
| 3rd Target | 18,000 |
In 2050, the NTPC share price is expected to be around ₹25,000 in a normal situation. In a bear market, it might be ₹17,500, and in a bull market, it may go up to ₹1,08,000.
| NTPC Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 17,500 |
| 2nd Target | 25,000 |
| 3rd Target | 1,08,000 |
| Years | Target Price |
|---|---|
| NTPC Share Price Target 2025 | ₹ 450 to 550 |
| NTPC Share Price Target 2026 | ₹ 550 to 700 |
| NTPC Share Price Target 2027 | ₹ 600 to 950 |
| NTPC Share Price Target 2028 | ₹ 650 to 1200 |
| NTPC Share Price Target 2029 | ₹ 900 to 1500 |
| NTPC Share Price Target 2030 | ₹ 1100 to 2000 |
| NTPC Share Price Target 2035 | ₹ 2200 to 6000 |
| NTPC Share Price Target 2040 | ₹ 4400 to 18000 |
| NTPC Share Price Target 2050 | ₹ 17,500 to 1,08,000 |
Conclusion
NTPC is the largest power producer in India. It is expanding into renewable energy, upgrading old plants, and benefiting from the country’s growing electricity demand. NTPC has a strong market position, multiple income sources, and good profit margins. However, it also faces challenges like high debt, environmental concerns due to its dependency on coal, and relatively low returns on equity and capital. Investors should consider both the opportunities and challenges before investing in NTPC. For the latest updates, check NTPC official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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