'Reduce' NTPC with price target of Rs 190: Kotak Securities

MUMBAI: Kotak Securities has maintained its ���Reduce��� rating on NTPC and has raised target price to Rs 190.

The brokerage expects NTPC���s earnings growth to remain moderate in FY10 and its capacity addition is likely to remain a concern.

���As in the past, project commissioning may see some slippages. We have built in further delays in the company's project commissioning plan for the XIth plan period. NTPC plans to set up 22430 MW of capacity in the XIth plan. As per our assessment, the company may be able to add upto 16550 MW as against its target of 22430 MW for the XIth plan,��� the brokerage note said.

���NTPC is currently trading at 19.5x FY10 earnings respectively. On a P/BV basis, the stock trades at 2.9x. We maintain our Reduce call on the company given likely slippage in capacity additions and muted growth in earnings in the near term. We raise target price to Rs 190 as we have reduced the cost of capital,��� the note concluded.