NTPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 114178.24 Crore) operating in Power sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 30390.60 Crore, down -4.09 % from last quarter Total Income of Rs 31687.24 Crore and up 13.42 % from last year same quarter Total Income of Rs 26794.68 Crore. Company reported net profit after tax of Rs 3241.32 Crore in latest quarter.
Investment Rationale
NTPC plans to reach RE capacity of 60GW by 2032. While this seems ambitious, the co. has taken steps on improving its renewable footprint. The co. has emerged as the lowest bidder for 1.9GW of competitively bid out renewable projects, and ~3GW of renewable capacities are under construction. Even as the co. gradually scales up its renewables journey, we expect continued capitalization for its thermal projects to drive 12% growth in regulated equity over FY21–23E. Receivables have reduced significantly as money from PFC-REC has come through and power demand continues to recover. The stock trades attractively at FY23E P/BV of 0.8x and dividend yield of 7%.
Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of June 30, 2021, while FIIs held 13.1 per cent, DIIs 33 per cent and public and others 2.8 per cent.
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