Buy NTPC; target of Rs 398: Mirae Asset Sharekhan

Mirae Asset Sharekhan's research report on NTPC

Q1FY26 adjusted standalone PAT of Rs. 4,414 crore was up 5% y-o-y with the regulated equity base growing 4% y-o-y to Rs. 92,344 crore. Consolidated PAT rose 11% y-o-y with good increase in profit of subsidiaries. NTPC has 30.9 GW of capacity under construction, comprising 15.6 GW of coal, 2 GW of hydropower and 13.3 GW of renewable energy projects. The company plans to add 11.8/ 9.9 GW of capacity in FY26/27 respectively.

Outlook

We maintain a Buy on NTPC with a revised PT of Rs. 398. Valuation of 1.7x/1.6x its FY26E/27 P/BV is reasonable given strong long-term growth prospects, and the stock offers a decent dividend yield as well.