Buy NTPC, target price Rs 180: Emkay Global

Emkay Global has buy call on NTPC with a target price of Rs 180. The current market price of NTPC is Rs 121.6.
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 117475.11 Crore) operating in Power sector.


NTPC Ltd. key Products/Revenue Segments include Generation Of Electricity, Other Operating Revenue, Consultancy Income, Coal and Lease Rentals for the year ending 31-Mar-2020.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 33095.67 Crore, up 8.90 % from last quarter Total Income of Rs 30390.60 Crore and up 15.41 % from last year same quarter Total Income of Rs 28677.64 Crore. Company reported net profit after tax of Rs 3366.90 Crore in latest quarter.

Investment Rationale
The brokerage maintains SoTP-based Dec’22 TP of Rs180. At CMP, the stock trades at 0.86x/0.8x PB on FY23E/FY24E. With RoE in the 12-12.5% range and a 7% EPS CAGR over FY21-FY24E, it believes the stock is attractively priced. Strengthening the RE portfolio and increasing the share of RE should drive rerating.

Promoter/FII Holdings
Promoters held 51.1 per cent stake in the company as of 30-Sep-2021, while FIIs owned 13.48 per cent, DIIs 31.98 per cent.