NTPC Ltd. share price target

21 November 2019 As part of the Indian governments strategic divestment program, the cabinet Details on the transaction value though are still awaited. According to our interaction with NTPC, the purchase value for these assets will be decided after an internal assessment. This process could take another 2-3 months. THDC (~1.5GW) and NEEPCO (~1.45GW) are broadly a hydro dominated portfolio, with combined hydro capacity of 2.3GW (refer exhibits 1/2). Acquisition of the same would increase NTPCs commercial capacity by ~5%. THDC operates 1.4GW of hydro plants and ~0.1GW of renewable capacity. According to tariff orders, regulated equity for its hydro portfolio stands at ~INR32b. Adj. profits were at INR8.5b for FY19, given CWIP and WC investments.

Q2 FY20, NTPC Ltd.'s quarterly profit beat analysts' estimates on the back of higher other income even as coal supplies fell due to the extended monsoon The Country's largest power generator- NTPC Ltd. with a group installed capacity of 57106 MW, declared the financial results for the second quarter and half-year ended 30 September 2019. For Q2 FY20, the Total Income was Rs. 24459.70 crore as against Rs. 23347.95 crore in Q2 FY19, registering an increase of 4.76. PBT was Rs. 3,497.72 crore, as against Rs. 2,634.68 crore in the corresponding quarter of previous year, registering an increase of 32.76%. For Q2 FY20, PAT was Rs. 3408.92 crore, as against Rs. 2,477.28 crore in the corresponding quarter of...

NTPC reported operationally weak set of Q2FY20 numbers. In a seasonally weak quarter, marred by monsoon, weak demand and higher hydro power generation, the print pertaining to gross generation and energy sold were below estimates. However, the silver lining was the capacity addition achievement till H1FY20, which instils confidence that NTPC will meets its capacity addition guidance for FY20E. Optically PAT looks ahead of estimates, which is on account of higher surcharge income booked (| 650 crore) during Q2FY20 as payments from SEBs have been delayed. This has...

U/r in 2QFY20 was on account of coal availability issues at Talcher/Sipat and capital overhaul at Farakka. NTPC expects to recover FC in 2HFY20 and plans to supply imported coal to plants facing continued shortage. Given the rise in over-dues, NTPC has booked late payment surcharge income of INR6.5b. Share of JV PAT stood at INR1.2b (v/s INR1.4b in 2QFY19). Current receivables were elevated at Even if the late payment surcharge and related interest costs were adjusted, we believe that NTPCs underlying numbers are strong and reflect the benefit of FY20- 24 tariff regulations. Farakka witnessed issues to capital NTPC has awarded tender for importing 6.5mt of coal. NTPC has booked late payment surcharge income of INR6.5b. Post implementation of its LC mechanism; company has received timely Over-dues >45 days now stand at INR70-75b.

3 October 2019 NTPC has completed trial-run operations at full load for unit-1 on 29 will likely commercialize the unit this month. For unit-2, light up will likely be completed over the next one month with commissioning scheduled for Jan20. Total project cost for the plant is ~INR110b (~INR83m/MW) excluding FGD. FGD contract of INR5.2b has been awarded and likely to commission in Nov 20. Coal for the plant would be sourced from its own captive mine (Pakri Barwadih or PB). The mine is located ~1,100km from the plant and significant investments (~INR15b) are made to ensure rail connectivity. Given the long distance between the mine and plant, freight cost is high (~INR2,200/t). Fuel costs are at ~ INR3-3.3/kWh for the plant. Initial tariffs would be >INR5/kWh. NTPC has two wagon tipplers in place at the site, with the third one set to commission by Nov19.

NTPC Ltd. owns and operates power generation plants that supply power to state electricity boards throughout India. The company generates power from coal, gas, liquid fuel, hydro, solar, nuclear, wind and renewable energy...

construction capacity is 19.3 GW and expected commercial capacity addition would be around 3.5GW in FY20. According to management, the regulated equity is expected to be Rs600 bn by the end of FY20 compared to ~Rs540 bn at the end of FY19. The company's FGD implementation plan is on track with final awarding materializing by end of this year. The stock is currently trading at P/BV 1.1x FY21E Consensus BV of Rs147. The stock offers attractive dividend yield of ~5%. Not rated. Robust capacity addition pipeline: NTPC's capacity addition pipeline remains...

Q1FY20, Profit misses estimates on higher finance costs NTPC, the public sector power major has registered 7% growth in standalone sales to Rs 24192.59 crore for the quarter ended June 2019. Higher sales together with 50 bps expansion in operating profit margin to 26.7% has facilitated 8% growth in operating profit to Rs 6452.38 crore. But with other income more than double (up 139%) to Rs 326.22 crore, the PBIDT was up by 11% to Rs 6778.60 crore. After accounting for higher interest and depreciation cost the...

Gross generation fell 1% to ~68.5 billion units (BUs) vs. estimate of 68.2 BUs whereas energy sold declined 1.4% YoY to 63.6 BUs vs. our estimate of 63.6 BUs. Plant load factor (PLF) of coal plants was at 73.9% vs. 78% in Q1FY19 while that of the gas based plants was at 20.6%. Similarly, plant availability factor (PAF) was at 91.1% vs. 85.90% in Q1FY19 while the same for gas based stations PAF was at 90.4% vs. 83.8%. In Q1FY20, commercial capacity of NTPC was at 46,525 MW. NTPC's PAF loss for the quarter was | 120 crore vs. | 490 crore in Q1FY19, which was mainly due to maintenance shutdowns...

spurred by higher tax write-back jumped up by 347% to Rs 10726.25 crore. With regulatory income being an expense of Rs 6375.93 crore compared to an income of Rs 525.88 crore, the PAT after RI stood higher by 49% to Rs 4350.32 crore. The other comprehensive expense was Rs 215.96 crore (compared to an income of Rs 35.62 crore in corresponding previous period)...