Buy NTPC; target of Rs 145: Motilal Oswal
Motilal Oswal is bullish on NTPC recommended buy rating on the stock with a target price of Rs 145 in its research report dated June 28, 2020.
June 30, 2020 / 02:00 PM IST
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.
For all recommendations report, click here
Disclaimer: 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.