Hold NTPC: Indiabulls Securities

Indiabulls Securities Research has come out with a research report on NTPC. The research firm has maintained hold rating on the stock with a DCF based fair value estimate of Rs 231, in its report dated November 19, 2009.

"NTPC's net sales for Q2’10 were Rs 107.8 billion, increasing 11.6% yoy, however decreasing 10.2% qoq, largely attributable to the fall in plant load  factor (PLF) of its coal based plants which form 82% of its total capacity. The net profit rose merely by 2% yoy, due to a one-time tax refund of Rs 5.31 billion last year. Nevertheless, the company still holds a strong market position, superior credit rating and strong growth prospects. So we remain positive on NTPC’s long term performance. Thus, we maintain our hold rating on the stock with a DCF based fair value estimate of Rs 231", says Indiabulls Securities Research.

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