Goldman Sachs maintains ‘buy’ on NTPC
Goldman Sachs has maintained its ‘buy’ rating on NTPC, saying that Central Electricity Regulatory Commission’s final tariff norms for FY10-14 are neutral to positive for NTPC’s earnings outlook.
CMP: Rs 190
Target Price: Rs 208
Goldman Sachs has maintained its ���buy��� rating on NTPC, saying that Central Electricity Regulatory Commission���s final tariff norms for FY10-14 are neutral to positive for NTPC���s earnings outlook, relative to the draft norms announced in September 2008.
���We maintain that effective tax rate and economic life of projects are critical parameters to assess NTPC���s profitability during FY 2010-14. We believe that a key risk for the stock has now played out and we maintain our earning estimates and buy rating on the stock,��� said the brokerage in a note to its clients.
The brokerage, however, believes that the key risks like delays in commercial capacity accretion beyond the expected timeline pose a downside risk. It also says that fuel security i.e. dependence on external fuel (coal and gas) supply and post-FY 2011, fresh capacity addition would be on a bid basis, thus altering its risk-return profile.
Target Price: Rs 208
Goldman Sachs has maintained its ���buy��� rating on NTPC, saying that Central Electricity Regulatory Commission���s final tariff norms for FY10-14 are neutral to positive for NTPC���s earnings outlook, relative to the draft norms announced in September 2008.
���We maintain that effective tax rate and economic life of projects are critical parameters to assess NTPC���s profitability during FY 2010-14. We believe that a key risk for the stock has now played out and we maintain our earning estimates and buy rating on the stock,��� said the brokerage in a note to its clients.
The brokerage, however, believes that the key risks like delays in commercial capacity accretion beyond the expected timeline pose a downside risk. It also says that fuel security i.e. dependence on external fuel (coal and gas) supply and post-FY 2011, fresh capacity addition would be on a bid basis, thus altering its risk-return profile.
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