Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by capacity expansions and diversification into renewables, tempered by manageable demand and cost pressures.
Basis of our Recommendation
NTPC is poised for strong growth driven by significant capacity additions in renewable energy and nuclear power, alongside a robust battery energy storage program. While the company maintains healthy margins, it faces challenges from weak power demand and rising costs, which could impact earnings in the near term.
Why We Like This Stock
- Significant capacity additions in renewable energy and nuclear power
- Strong core profitability and execution pipeline
- Battery energy storage program enhancing operational flexibility
Things To Watch Out For
- Weak power demand impacting earnings
- Increased costs presenting margin pressures
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 178,525 | 188,138 | 187,385 | 207,280 | 226,063 |
| Profit Before Tax (Cr.) | 28,332 | 32,381 | 24,669 | 29,803 | 34,294 |
| PBT Margin | 15.9% | 17.2% | 13.2% | 14.4% | 15.2% |
| Net Profit (Cr.) | 23,075 | 25,557 | 20,136 | 23,829 | 27,420 |
| EPS | 23.3 | 25.8 | 20.3 | nan | nan |
Company Overview
Show Company Profile
NTPC Limited operates as an integrated power company in India. It operates through two segments: Generation and Others. The company generates power from fossil fuels, hydro, solar, wind, nuclear, and renewable energy sources. It also engages in the coal mining and energy trading business. NTPC Limited was incorporated in 1975 and is based in New Delhi, India.