NTPC share price: Motilal Oswal recommends BUY with target price Rs 141
The Ministry of Power (MoP) has issued a guideline enabling DISCOMs to exit power purchase agreements (PPAs) on completion of 25 years. Each state/DISCOM can take a call on relinquishment based on demand and supply. This in turn can pose a risk to some of NTPC’s projects in the near term. Motilal Oswal recommends buy with target price on NTPC is Rs 141.
Motilal Oswal interaction with the management suggests that DISCOMs cannot cherry-pick projects to let go and will have to relinquish other projects (with lower tariffs) covered under such an agreement: Reuters