Buy NTPC; target of Rs 198: Motilal Oswal
Motilal Oswal is bullish on NTPC has recommended buy rating on the stock with a target price of Rs 198 in its research report dated July 12, 2017
Motilal Oswal's research report on NTPC
NTPC sa ( standalone) capitalization (drives regulated equity and PAT) will pick up pace after a lull period of 3-4 years( from ~1-2GW p.a. over FY14-17 to ~4.7GW in FY18E) . NTPCsa has already commissioned ~3.7GW, and plans to commission additional ~2.6GW before the end of FY18. This augurs well for the pipeline of capitalization. NTPCjv (JVs) also targets to capitalize 250MW and commission 660MW. In addition, we expect capitalization of ~1GW solar projects.
We expect the stock to get re-rated as the two concerns regarding execution and GCV measurements are now largely behind. We value the stock at INR198/share based on DCF. Reiterating Buy.
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