Please refer to important disclosures at the end of this report
1
NTPC Limited is an India-based company, which is engaged in the generation
and sale of electricity. The principal business activity of the Company is the
electric power generation by coal-based thermal power plant. With a weighted
average tariff of `3.25/kWh the SEB’s preference for cheaper power will favou
r
NTPC in a low demand period. With a capacity addition pick up expected in
FY17–19, NTPC has high earnings visibility. Most utilities are currently suffering
from low capacity utilisation (PLF) due to low power demand, while NTPC
continues to enjoy guaranteed 15.5% RoE, as long as its plants are available to
produce power. With 18GW of under-construction capacity to be commissioned
by FY19–20, NTPC will add >40% of its existing 38GW commercial base, in the
next 3–4 years. Once it is executed this can potentially add >60% to regulated
equity by FY1920. Solar capex is an additional 10GW targeted in the next
seven years, of which 250MW in AP has been ordered. Since this entire capacit
y
has signed PPAs at regulated RoEs, earnings growth will closely follow project
capitalisation. The company has been maintaining a healthy dividend payout o
f
30.36% (Div. Yield: 2.11%). Hence Buy.
BUY
CMP `159
Stock Info
Sector
Beta 0.8
Bloomberg Code
Shareholding Pattern (%)
Promoters 69.8
MF / Banks / Indian Fls 17.1
FII / NRIs / OCBs 11.2
Indian Public / Others 1.9
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
NTPC (5.1) 19.1 1.9
Reuters Code NTPC.BO
NTPC@IN
10
BSE Sensex 26,150
Nifty 8,074
Face Value (
`
)
Power
Market Cap (
`
cr) 1,30,773
52 Week High / Low 170/117
Avg. Daily Volume 3,87,155
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
NTPC
Others | Powe
r
November 21, 2016
NTPC | Power
November 21, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement NTPC
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)