you are here: HomeNewsBusiness

Buy NTPC; target of Rs 140: Sharekhan

Sharekhan is bullish on NTPC has recommended buy rating on the stock with a target price of Rs 140 in its research report dated February 04, 2021.

February 09, 2021 / 10:34 PM IST
  • bselive
  • nselive
Todays L/H

Sharekhan's research report on NTPC

Q3FY2021 performance was steady with a 24% y-o-y increase in adjusted PAT to Rs. 3,308 crore (in line with consensus estimates). Earnings growth was driven by a 14.5% y-o-y increase in regulated equity base, 35% rise in surcharge income to Rs. 565 crore and higher PLF incentive income of Rs. 76 crore (versus just Rs. 9 crore in Q3FY20). The management has guided for strong commercialisation of 5,074 MW for FY2021E and 6,000 MW for FY2022E and eyes lower fixed cost under-recoveries of Rs. 350-400 crore by March-2021. Board declared interim dividend of Rs3/share. A risk averse regulated business model provides earnings visibility (19% PAT CAGR over FY2021E-FY2023E) as a robust commercialisation target would drive strong growth in regulated equity base.


We maintain a Buy on NTPC with an unchanged PT of Rs. 140, as valuation remains attractive at 0.7x its FY2023E P/BV (48% discount to historical multiple) despite strong earnings visibility, decent RoE of 13% and dividend yield of 6-7%.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 9, 2021 10:34 pm

stay updated

Get Daily News on your Browser