Emkay Global Financial's report on NTPC
NTPC’s coal unit PLF is back to the good old days, with the PLF standing above 80% in Q1FY23. This is the highest Q1 coal PLF since Q1FY17 and was driven by strong power demand in the country. Thermal units across the country have seen an uptick in PLF. The role of thermal units continues to be vital now, with thermal generation accounting for 80% of the incremental demand in Q1FY23 compared with Q1FY22. RE/hydro met 18%/3% of the incremental demand in the quarter. It is pertinent to note that while H2 of any fiscal year sees lower power demand, thermal generation is higher as hydro and RE generation is weak in that part of the year.
Outlook
We maintain Buy on NTPC as the strong power demand should keep the utilization of coal assets high in the medium term. This, along with growth in the RE space, bodes well for the company. After including DPS as part of the calculations, our SoTP value stands at Rs188/share (Rs180 earlier). NTPC is trading at 0.94x FY24E PB with an RoE of ~12%.
More Info
At 12:13 hrs NTPC was quoting at Rs 136.25, down Rs 4.50, or 3.20 percent.
It has touched an intraday high of Rs 142.40 and an intraday low of Rs 136.15.
It was trading with volumes of 195,908 shares, compared to its thirty day average of 613,768 shares, a decrease of -68.08 percent.
In the previous trading session, the share closed down 0.46 percent or Rs 0.65 at Rs 140.75.
The share touched its 52-week high Rs 166.30 and 52-week low Rs 111.95 on 19 April, 2022 and 26 August, 2021, respectively.
Currently, it is trading 18.07 percent below its 52-week high and 21.71 percent above its 52-week low.
Market capitalisation stands at Rs 132,117.08 crore.
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