Emkay Global reiterates buy on NTPC, target price Rs 157

Emkay Global has reiterated buy rating on NTPC in the long term with a target price of Rs 157. The stock ended down 0.55% at Rs 126.30 on Monday while the BSE Sensex closed 163.68 points up at 37,145.45.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 25931.11 crore, up 13.29 % from last quarter sales of Rs 22889.81 crore and up 7.99 % from last year same quarter sales of Rs 24013.23 crore. The company has reported net profit after tax of Rs 2693.17 crore in the latest quarter.


Investment Rationale

NTPC’s plant availability factor (PAF) was affected at few stations in August due to coal supply crunch and plant shutdown, however, year-to-date FY20 PAF remained high at 87.2%, during April-July period from better coal supply and inventory management, said the brokerage. The brokerage estimates that the RoE and operational costs will improve soon, said Emkay. Any delay in capacity additions and subdued coal supply will be a key risk.