NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
NTPC Ltd. reported a decent set of numbers. Consolidated net sales increased by 13%/2% YoY/QoQ beating the consensus by 5%. Ebitda stood at Rs 14,017 crore, up 9% YoY and slightly down by 1% QoQ (due to slightly higher fuel cost QoQ). It stood ahead of the consensus by 2%.
Profit after tax grew by 12% YoY but declined by 15% QoQ to Rs 5,500 crore (4% ahead of consensus). QoQ decline in PAT was mainly due to a marginal decline in Ebitda and lower other income.
Valuation and Recommendation:
We maintain our 'Buy' rating on NTPC. We value the company's conventional thermal business at 2.5 times (from 2.3 times) price to book value on its FY26 consolidated regulated book value.
We value its renewable business business at enterprise value/Ebitda of 12 times on FY26 Ebitda. Our target price indicates a potential upside of 14% from the current market price.
Key Risks to our estimates and target price
Delays in commissioning of the Thermal and RE capacity.
Financial position of Discom. NTPC's trade receivables are dependent on the timely payment from state Discoms
Lower Thermal Power Plant Plant Load Factor and Plant Availability Factor.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
