Buy NTPC, target price Rs 145: Edelweiss

Edelweiss has buy call on NTPC with a target price of Rs 145. The current market price of NTPC Ltd. is Rs 118.25 Time period given by analyst is one year when NTPC Ltd. price can reach defined target.

NTPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 114711.56 Crore) operating in Power sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 31687.24 Crore, up 11.62 % from last quarter Total Income of Rs 28387.27 Crore and up 1.19 % from last year same quarter Total Income of Rs 31315.32 Crore. Company reported net profit after tax of Rs 4446.12 Crore in latest quarter.


Investment Rationale
NTPC is in transition, moving from thermal to renewable aggressively, which is a key monitorable. However, near-term earnings growth hinges on commercialisation of thermal capacity, post which renewables would take centre stage. With 13% EPS CAGR, 6% dividend yield and 0.8x FY23E P/BV, the brokerage retains ‘BUY/SO’.

Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of March 31, 2021, while FIIs held 11.9 per cent, DIIs 33.9 per cent and public and others 3 per cent.