NTPC gets GST demand order worth over Rs 100 crore from 7 states
NTPC has received demand orders from authorities of seven states for GST, interest, and penalty worth a total of Rs 100.80 crore. The GST demand orders have been issued from states of Delhi, Uttar Pradesh, Andhra Pradesh, Bihar, Chattisgarh, Maharastra and Gujarat.
The company stated that it will file an appeal before the 1st appellate authority of the applicable jurisdiction against the said orders within the prescribed timelines. It also informed investors that the GST demand orders will not have a material impact on the financials, operations, or other activities of the company.
Shares of the company surged in the previous session after Axis Securities rolled out a bullish outlook for the stock, initiating coverage with a buy rating and a target price of Rs 345.
The brokerage firm believes NTPC’s substantial portfolio in conventional power, with a firm cost-plus business model, positions it well in a growing peak power cycle.
Analysts at the firm feel that this will contribute to the company’s stable cash flows and facilitate growth led by renewable energy.
The firm also sees NTPC as a good portfolio bet, backed by its stable dividend yield.