Upper Circuit Stocks: Upper circuit started as soon as the shares were listed, expert told what to do now

Shares of NTPC Green Energy, a public sector green energy company, hit an upper circuit of 10% soon after being listed on the stock exchanges today. On the National Stock Exchange (NSE), the stock hit an upper circuit at ₹ 122.65 per share. However, the upper circuit on the stock opened shortly after this. The stock is trading around 13% higher than its issue price of ₹ 108 per share. For some time now, investors have been focusing on clean energy, so action is being seen in this stock.

On Wednesday, the stock of NTPC Green Energy was listed on NSE at a price of ₹ 111.60 per share. Whereas, on BSE, this stock was listed at a price of ₹ 111.50 per share. Thus, it was listed at a premium of 3.33% over the issue price.

What did the management say after the shares were listed? After
the shares were listed on both the exchanges, the management of NTPC Green Energy told CNBC-Awaaz in an exclusive conversation that the current commissioned capacity of the company is 300 MW. The company is working on capacity expansion in 6 to 8 states. It is preparing to add 3000 MW capacity by March. By the end of the financial year 2025, the total capacity of the company will be 600 MW. After this, there is a plan to add 6,000 MW capacity in the financial year 2027 and 7,000 MW capacity in the financial year 2027.

The management said that till 2008-09, the solar power tariff was ₹15-17 per unit. The solar power tariff is continuously declining. Due to the development of technology in this sector, the tariff has come down, which will be beneficial for the customers in the future. The company decides the tariff by looking at the cost at the time of the project. Due to the reduction in solar tariff, good growth in volume is also possible. Expenditure for capacity expansion will be done in the ratio of 80:20. 80% of the amount will be raised through debt. The company plans to raise further funds through internal approval.


The company has signed agreements with the governments of Rajasthan and Andhra Pradesh for 25,000 MW each. It has signed an agreement with Maharashtra for 20,000 MW. It has also signed an agreement with the Chhattisgarh government. Land is available quickly by signing agreements with states. The company said that it also builds pooling stations at large plants. The company does not have much focus on wind energy.

What is the opinion of experts on the stock?
Shivani Nyati of Swastika Investmart, while giving her opinion on this stock, said that after listing, the valuation of NTPC Green Energy has increased from $10.8 billion to $12.08 billion. The stock is witnessing demand due to strong sentiments from investors about renewable energy. The company's portfolio is strong and diversified. There is a steady growth in income. Improvement in market sentiments and the ambition of renewable energy and the trust of institutional investors are also visible in this stock. Long term investors are advised to invest in the stock. Also, it is advised to put a stop loss at the share price of ₹ 110 per share.

Prashant Tapase, Research Analyst, Mehta Equities, said that as expected, this stock was listed at a flat level. There is a good opportunity for long term investors to invest in NTPC Green Energy. This company is one of the leading companies in the renewable energy sector of the country. The company has the capacity to meet the growing demand. It is planning strategic expansion in green hydrogen, green chemicals and battery storage.
 

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