Accumulate NTPC; target Rs 163: Angel Broking
Brokerage house Angel Broking is bullish on NTPC and has recommended 'Accumulate' rating on the stock with a price target of Rs 163 in its research report dated May 13, 2013.
Angel Broking's research report on NTPC
"For 4QFY2013, NTPC's top-line performance was below our estimates, registering a tepid growth of 1.2 percent yoy to 16,462cr. OPM contracted by 156bp yoy, mainly on account of 220bp yoy increase in other expenses (due to increase in water charges by state government). However, reported PAT came in higher by 57.2 percent yoy to Rs 5,749 due exceptional gain of Rs 1,684. The exceptional gain is on account of settlement of past dues by Delhi Electric Supply Undertaking (Principal amount of Rs 836cr is classified under other operating income and interest of Rs 1,684 is classified as exceptional item). After adjusting for exceptional gain, Net Profit grew by 4.0 percent yoy to Rs 2,698cr.NTPC reported lower PAF yoy at 92.6 percent (94.7 percent in 4QFY2012) and 95.9 percent (98.6 percent in 4QFY2012) for coal and gas-based plants respectively. Gross generation for the quarter was flat yoy at 60.3bn unit on account of losses due to grid restriction (7.2bn units in 4QFY13 vs 4.7bn units in 4QFY12) and fuel supply constraints (3.1bn units in 4QFY13 vs 0.9bn units in 4QFY12). It led to 422bp yoy contraction in PLF of coal based stations to 86.8 percent. PLF of gas based stations stood at 42.6 percent, a sharp contraction of 2,438bp due to high price of gas.We expect NTPC to register a CAGR of 12.9 percent in its topline on back of robust capacity addition. The stock is currently trading at 1.4x FY2014E and 1.3x FY2015E P/BV. Considering NTPC's regulated equity model and robust capacity addition plans, we recommend accumulate on the stock with a target price of Rs 163," says Angel Broking research report.Also Read: Buy NTPC on dips: Sudarshan SukhaniDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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