Shares of NTPC rose nearly 7 percent on Monday after the state-owned power company's June quarter earnings beat street estimates. Its net profit fell about 6 percent to Rs 2,948.94 crore as against Rs 3,132.73 crore in the corresponding quarter last year.

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The sentiment was also positive after the company said that it has begun the bulk supply of fly ash using newly developed infrastructure at its Rihand project in Uttar Pradesh to distant cement plants.

The stock rose as much as 6.7 percent to its intra-day high of Rs 94.40 on BSE.

The company's revenue from operations slipped 2.57 percent YoY to Rs 26,194.76 crore during the quarter under review. The firm's total expenses were at Rs 22,649.04 crore, against Rs 23,814.32 crore a year ago.

In a separate statement, the company said gross power generation of the NTPC group in the June 2020 quarter stood at 60.18 billion units, against 68.49 billion units a year ago.

Brokerage house Jefferies was also bullish on the stock post the results. It maintained a 'buy' call on the stock with a target price of Rs 125 per share.

As per the brokerage, Being a regulated business, profits should recover on an annualised basis. It believes earnings growth from capacity addition and efficiencies should drive upside from current levels.