ICICI Securities has given Buy recommendation for NTPC with a target price of Rs. 196 in its research report issued on Apr 12, 2022

ICICI Securities research report on NTPC

NTPC has closed FY22 with excellent operational figures despite the challenges faced during H1FY22. NTPC group has added 3.3GW (net) commercial capacity during the year to reach 69GW, while standalone commercial capacity increased by 2.2GW to reach 54.6GW. Renewable capacity addition of 502MW helped increase the non-fossil fuel pie by 30bps YoY to 8.1% of total installed capacity, which is targeted to increase to ~40% as the company aims to reach 60GW of installed RE capacity by FY32. On the operational front, group gross generation increased by 14.6% to 360BU. NTPC’s standalone coal plants’ PLF improved 453bps YoY to 70.8% in FY22, highest since FY19. While NTPC’s transition towards an integrated energy company with focus on clean and green energy is taking shape with both large-scale and pilot projects in several business areas, energy security concerns have re-ignited interest in thermal power. We believe NTPC will be the largest beneficiary, as India aims to secure RTC power availability for its increasing base demand primarily through coal-based power.

Outlook

Maintain BUY with an unchanged SoTP-based target price of Rs196/sh and FY24E standalone/ consolidated EPS of Rs19.2/Rs20. NTPC is currently trading at FY24E standalone P/BV of 1x (P/E of 8x) and FY24E consolidated P/E of 7.3x.

More Info

At 17:30 NTPC was quoting at Rs 152.65, down Rs 0.40, or 0.26 percent.

It has touched an intraday high of Rs 153.65 and an intraday low of Rs 150.80.

It was trading with volumes of 299,763 shares, compared to its thirty day average of 692,612 shares, a decrease of -56.72 percent.

In the previous trading session, the share closed up 0.69 percent or Rs 1.05 at Rs 153.05.

The share touched its 52-week high Rs 157.70 and 52-week low Rs 97.05 on 07 April, 2022 and 22 April, 2021, respectively.

Currently, it is trading 3.2 percent below its 52-week high and 57.29 percent above its 52-week low.

Market capitalisation stands at Rs 148,019.61 crore.

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