Hold NTPC; target of Rs 88: ICICI Direct

ICICI Direct's research report on NTPC

NTPC reported operationally decent Q2FY21 results amid challenging times. In the wake of gradual opening up of economic activity, the company posted better plant load factor (PLF) data vis-à-vis industry average and, hence, in generation. The company has taken an exceptional hit in terms of one-time rebate allowed to SEBs. NTPC has also announced a buyback worth Rs 2275 crore where the company will buy back at a price of Rs 115/share.

Outlook

Deceleration in coal capacity addition and strong focus on augmenting renewables portfolio is likely to pan out post FY23E. We will still prefer to remain on the sidelines on how the strategy of renewables business shapes up. Till then, we maintain HOLD with a revised target price of Rs 88/share.