Motilal Oswal 's research report on NTPC
NTPC’s results highlight the impact of several one-offs, largely on the tax front. Adj. for these one-offs, though, numbers reflect the benefit of fixed cost (F/C) recoveries and strong other income. We expect FC under-recoveries (u/r) to remain low on better coal availability. Commercialization at 5.3GW in FY20 marked an all-time high for the company. A pickup in capitalization, along with lower F/C u/r, should drive a 10% earnings CAGR over FY20–23. Maintain Buy, with TP of INR145/sh.
Thus, FC u/r should remain low. Maintain Buy, with a DCF based target price of INR145/sh.
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