Emkay Global Financial's research report on NTPC
NTPC reported adjusted PAT of Rs44.2bn – 18% YoY growth in 3Q, taking 9MFY23 growth to ~10% YoY. PAT was above consensus/our estimates, with under-recovery coming down and 3Q turning out to be a decent quarter from the incentive perspective. PAF for coal units stood at 92.67% in 3QFY23 vs 85.98%. Coal PLF for 9MFY23 stands at 74.45% vs 69.1% YoY. Utilization of NTPC units have been on the rise since the last few years, on strong power demand in the country. We believe that given the high operational standard of NTPC units, PLFs can go above 90% in coming years, if demand growth continues.
Outlook
We maintain BUY with Mar-24 TP of Rs200. We raise our EPS estimates by ~4% each for FY23/FY24/FY25. High utilization, strong capacity addition and RE monetization are all positives for the company, in our view.
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