NTPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 96045.48 Crore) operating in Power sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 27526.03 Crore, down 0.66 % from last quarter Sales of Rs 27707.76 Crore and up 8.32 % from last year same quarter Sales of Rs 25412.39 Crore Company has reported net profit after tax of Rs 3681.33 Crore in latest quarter.
Investment Rationale
NTPC has undertaken steps on the renewable front and emerged as the lowest bidder in 1.4GW of renewable projects as well. The brokerage expects capitalization to pick up pace, and drive a regulated equity CAGR of 11% over FY20–23E and boost RoE (+100bp accretion). Receivables, though, would remain the key monitorable; it expects the situation to improve as power demand recovers and money from the PFC-REC scheme flows through. The stock trades attractively at FY22E P/BV of 0.7x and dividend yield of ~7%. It maintains Buy, with DCF-based Target Price of INR139/share.
Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of Dec 30, 2020, while FIIs held 12.3 per cent, DIIs 33.6 per cent and public and others 3 per cent.
