NTPC was flat at Rs 184.30 at 12:00 IST on BSE after signing memorandum of understanding with some leading firms to set up a nationwide power exchange.
The company announced this before market hours today, 11 August 2008.
Meanwhile, the BSE Sensex was up 286.81 points, or 1.89%, to 15,454.63 on strong cues from global equities. A slide in oil prices to their lowest level in three months powered a rally in US stocks on Friday, 8 August 2008.
On BSE, 3.78 lakh shares were traded in the counter. The scrip had an average daily volume of 19.63 lakh shares in the past one quarter.
The stock hit a high of Rs 187.40 and a low of Rs 183.45 so far during the day. The stock had hit a 52-week high of Rs 291 on 15 January 2008 and a 52-week low of Rs 148.75 on 27 June 2008.
The large-cap scrip had outperformed the market over the past one month till 8 August 2008, gaining 14.42% compared to the Sensex’s return of 13.62%. It had also outperformed the market in the past one quarter, declining 4.28% compared to Sensex’s decline of 11.2%.
The company has an equity capital of Rs 8,245.46 crore. Face value per share is Rs 10.
The current price of Rs 184.30 discounts its Q1 June 2008 annualised EPS of Rs 8.38, by a PE multiple of 21.99.
NTPC has signed a memorandum of understanding with NHPC, Power Finance Corporation and Tata Consultancy Services for incorporation of a joint venture company to set-up and operate a power exchange at national level.
A power exchange (PX), just like stock and commodity bourses, acts as a platform for buying, selling and trading in electricity. Conventionally electricity is traded bilaterally at mutually agreed rates.
Earlier, the Indian Energy Exchange (IEEL), a joint venture company formed by Financial Technologies (India) (FTIL) and MCX (Multi Commodity Exchange), had got the Central Electricity Regulatory Commission (CERC) nod to set up the first nation-wide power exchange (PX).
NTPC's net profit declined 27.1% to Rs 1,726.53 crore on 6.5% rise in sales to Rs 9,539.47 crore in Q1 June 2008 over Q1 June 2007.
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.