NTPC reported revenues which were in line with our estimate at Rs179bn, up 6.9% yoy on the back of improved electricity generation (up 8.5% yoy). Net profit at Rs28.9bn, was up 39.9% yoy largely on account of income tax refund. The company's stock has underperformed the Nifty over the past 12-18 months on account of negative impact of new CERC regulations which is affecting core RoE. Operating parameters of NTPC's power plants are under pressure with PLF dropping by 600-800bps due to lower system demand and fuel issues. However, in our view, both these have already been factored in the current valuation of 1.1x...