Buy NTPC; target of Rs 176: AUM Capital

NTPC Ltd. is India’s largest energy conglomerate. It operates in segments, including generation and other businesses. It generates and sells bulk power to state power utilities and its other business includes providing consultancy, project management and supervision, oil and gas exploration and coal mining. The company is also engaged in consultancy, power trading, training of power professionals, rural electrification, ash utilization and coal mining business. It has five subsidiary companies - NTPC Electric Supply Company Ltd, NTPC Vidyut Vyapar Nisam Ltd, Kanti Bijlee Utpadan Nigam Ltd, Bhartiya Rail Bijlee Company Ltd and Patratu Vidyut Utpadan Nigam Ltd.

At the CMP of Rs.154.85, the stock is trading at FY17E P/E of 11.44x. We recommend a BUY on the stock with a Price Target of Rs.176 (13x FY17E EPS) with an upside potential of 14% from the current level with an investment horizon of 9-12 months.For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.