NTPC stake buy in SJVN to help NTPC portfolio: CLSA
Apart from being value accretive, the acquisition would also help NTPC balance its portfolio by tripling its hydro capacity and add 2.7 GW of potential regulated hydro assets.
By ET Bureau | Updated:
Mumbai: Amid reports that NTPC is looking to buy the government's stake in hydro power producer SJVN, CLSA said the acquisition would be value accretive for the company and triple its hydro capacity.
"…apart from being value accretive, the acquisition would also help NTPC balance its portfolio by tripling its hydro capacity and add 2.7 GW of potential regulated hydro assets," said CLSA in a note today.
The government owns 64.5 per cent stake in SJVN.
"We like NTPC’s M&A strategy, which is focused on acquiring existing regulated assets with option value earlier of states and now joint sector, SJVN," said CLSA.
The brokerage has reiterated outperform rating on NTPC with a target price of Rs 176.
"…apart from being value accretive, the acquisition would also help NTPC balance its portfolio by tripling its hydro capacity and add 2.7 GW of potential regulated hydro assets," said CLSA in a note today.
The government owns 64.5 per cent stake in SJVN.
"We like NTPC’s M&A strategy, which is focused on acquiring existing regulated assets with option value earlier of states and now joint sector, SJVN," said CLSA.
The brokerage has reiterated outperform rating on NTPC with a target price of Rs 176.
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