August 24, 2016 / 19:01 IST
Religare's research report on NTPC
NTPC reported an in-line Q1 with revenue/PAT up 11.5%/4% to Rs 190.6bn/ Rs 23.7bn led by a strong operating performance (coal PLFs 81.4%; +377bps YoY); this shored up incentive income to Rs 1.53bn (Q1FY16: Rs 770mn). Standalone/group capex stood at Rs 55bn/Rs 67bn and NTPC expects to install/commercialise 5,648/3,725MW in FY17. With visible benefits of the UDAY scheme (improving PLFs) and aggressive commissioning, NTPC’s return ratios are set to improve over FY16-FY18E. BUY; Mar’17 TP Rs 175.
With improving PLFs and an aggressive commercialisation schedule, NTPC should see better ROEs going ahead. The company remains the best play in India’s power generation industry. Maintain BUY; Mar’17 TP Rs 175.
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