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Buy NTPC; target of Rs 147: Dolat Capital

Dolat Capital is bullish on NTPC has recommended buy rating on the stock with a target price of Rs 147 in its research report dated August 17, 2020.

August 20, 2020 / 02:03 PM IST
 
 
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Dolat Capital's research report on NTPC


NTPC Q1 sales was lower by 3% YoY at Rs235bn while EBITDA came in at and APAT was Rs24bn. It has provided for a rebate of only Rs8bn instead of the entire Rs14bn in Q1 due to some states not revoking post foreclosure clause. NTPC had no under recoveries of fixed charges in Q1FY21. NTPC commercialized 660MW at Khargone in Q1. It plans to achieve 5.5GW of capacity addition in FY21. Its capex target remains at Rs210bn in FY21. Its CWIP is expected to fall as more assets are capitalized and it is targeting a 15% CAGR in regulated equity in next three years.


Outlook


We maintain estimates in FY21. Stock is trading at an attractive P/BV of 0.7x FY22E. We maintain a Buy rating with a TP of Rs145 valuing the stock at 1.2xFY22EP/BV.


For all recommendations report, click here

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first published: Aug 20, 2020 12:36 pm
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