Karvy Stock Broking Limited has maintained ‘buy’ rating on NTPC stock with an intraday target of Rs 189. 

According to Karvy, interested traders can purchase the stock between Rs 180-181 with a strict stop loss of Rs 177. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 191. 
 
Shares of the company, on Tuesday (Sep 23), closed at Rs 179.85 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 3591583. Current EPS & P/E ratio stood at 8.21 and 22.14 respectively. The share price has seen a 52-week high of Rs 291 and a low of Rs 148.75 on BSE. 

The stock has been recommended after analyzing its last performances. So traders are advised not to sell the stock before achieving the said target.

The stock has great potential to go upside. It can still exhibit superb surge. The long term traders are recommended to hold the stock.

Mr. Jairam Ramesh, Minister of State of Commerce and Power, Bihar, launched the 2x660 MW second phase of NTPC’s mega-power project at Barh near Patna, Bihar on Sep 22.

The overall investment for the project is pegged at Rs 73.40 billion. The initial 660 MW unit will be licensed in March 2012, while the second 660 MW plant will be accredited in January 2013.

Country’s biggest power generator, NTPC is eyeing to save around Rs 25 billion via bulk procurement of next generation power equipment, as part of its strategy to double up its installed capacity by 2015.

NTPC has also formed a joint venture company (JV) with Bihar State Electricity Board (BSEB) for establishing a coal based power project, with an overall capacity of 1,980 MW, in Bihar.
 
Moreover, IL&FS, leading private financial institution, is expected to buy around 50 percent equity stake in NTPC-BHEL power projects to become strategic partner in the JV firm.

Each NTPC and BHEL will posses 25 percent equity stake in the JV company, which was floated in April 2008.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Reliance Power, Tata Power, Reliance Infra and Power Grid Corp.