NTPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 133571.58 Crore) operating in Power sector.
NTPC Ltd. key Products/Revenue Segments include Generation Of Electricity, Other Operating Revenue, Consultancy Income, Coal and Lease Rentals for the year ending 31-Mar-2020.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 33095.67 Crore, up 8.90 % from last quarter Total Income of Rs 30390.60 Crore and up 15.41 % from last year same quarter Total Income of Rs 28677.64 Crore. Company reported net profit after tax of Rs 3366.90 Crore in latest quarter.
Investment Rationale
While the high concentration of coal-thermal projects had raised ESG concerns on the company, we see incremental efforts toward RE expansion. This, along with an improvement in the RoE profile, should lead to a re-rating in the stock. In the past five years, the company has traded at an average PB of 1.1x and RoE of sub-11%. With RoEs moving to 12.5%, a re-rating should happen, in our view. We have cut FY22E/FY23E/FY24E EPS by 3-5% to factor in the lower surcharge. The brokerage maintains Buy with a TP of Rs180, at an implied P/B multiple of ~1.2x.
Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.48 per cent, DIIs 31.98 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
