New project powers NTPC

NTPC surged 4.47% to Rs 195.05 at 15:50 IST on BSE on reports the company proposes to set up a 2000-megawatt project in joint venture with Andhra Pradesh State Power Generation Corporation.

The stock hit a high of Rs 195.20 and a low of Rs 185 so far during the day. The stock had a 52-week high of Rs 291 on 15 January 2008 and a 52-week low of Rs 135.20 on 14 March 2007.

The company’s current equity is Rs 8245.46 crore. Face value per share is Rs 10.

The current price of Rs 195.05 discounts its Q3 December 2007 annualized EPS of Rs 8.63, by a PE multiple of 22.60.

As per recent reports, the estimated cost of the project is Rs 10000 crore. The duration of the proposed project is 4-5 years, report added.

On 15 February 2008, NTPC signed an agreement with Bihar State Electricity Board to form a joint venture company to undertake a thermal power project in Bihar.

On 27 February 2008, the company signed a loan agreement for 68.56 million euros with Nordic Investment Bank to part fund its capital expenditure.

In November 2007, NTPC signed memorandum of understanding (MoU) with Uttar Pradesh Rajya Vidyut Utpadan Nigam to form a joint venture for establishing and operating a coal based thermal power project at Meja Tehsil or any other suitable site in Allahabad district in Uttar Pradesh.

NTPC’s net profit declined 15.4% to Rs 1779.90 crore on 9.4% growth in net sales to Rs 9330.80 crore in Q3 December 2007 over Q3 December 2006.

NTPC’s core business is operation of power generating plants. It also provides consultancy in the area of power generation to companies in India and abroad.