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Last Updated : Jun 12, 2019 03:52 PM IST | Source: Moneycontrol.com

Buy NTPC; target of Rs 158: Motilal Oswal

Motilal Oswal is bullish on NTPC has recommended buy rating on the stock with a target price of Rs 158 in its research report dated May 27, 2019.

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Motilal Oswal's research report on NTPC


Standalone (S/A) adj. PAT (management stated) grew by a healthy 14% YoY to ~INR106b in FY19 even as regulated equity grew by ~6% YoY (to ~INR540b). The strong performance was led by sharp reduction in under-recoveries on fixed charge (from ~INR14b in FY18 to ~INR8b in FY19) and increase in late payment surcharge income. Reported PAT was higher at INR117.4b (13% YoY) in FY19 on tax related adjustments (~INR17b), offset partly by certain one-time expenses.


Outlook


We are not building in the benefit of the shift to accrual accounting of late payment surcharge, which can boost PAT by ~INR3-4b. Re-iterate Buy with a DCF-based target price of INR158/share.


For all recommendations report, click here


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First Published on Jun 12, 2019 03:52 pm
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