NTPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 88259.45 Crore) operating in Power sector.
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 27707.76 Crore, up 5.78 % from last quarter Sales of Rs 26194.76 Crore and up 13.28 % from last year same quarter Sales of Rs 24459.70 Crore. Company reported net profit after tax of Rs 3343.19 Crore in latest quarter.
The brokerage expects NTPC’s standalone regulated equity to increase at a strong CAGR of 9.8% over FY20-23E to Rs800bn. Profit growth will be driven by the speedy conversion of its CWIP into commercial assets, which would begin yielding high RoE. It has marginally revised estimates to factor in a change in project mix as per the revised commissioning targets. Accordingly, it has marginally revised TP to Rs125 from Rs122 and maintains positive stance on NTPC due to attractive valuations of 0.7x FY22E P/B, risk-averse regulatory business model and a dividend yield of 5%-6%. Key risks include rising receivables and delay in meeting its project commissioning targets.
Promoters held 51 per cent stake in the company as of Sept 30, 2020, while FIIs held 11.4 per cent, DIIs 34.9 per cent and public and others 2.7 per cent.