Goal: ₹385
CMP: ₹310.95
NTPC is India’s largest energy utility, with a 17 per cent share within the nation’s put in energy capability having 76GW operational capability and contributing 24 per cent (422BU) to India’s complete electrical energy era in FY24.
Thermal energy capability is ready to develop by 25GW by FY32F, which incorporates 11GW of capability under-construction and eight.8GW of thermal tasks to be awarded in FY25F, supporting the Central Electrical energy Authority or CEA’s forecast of 80GW further thermal capability by FY32F. Concurrently, NTPC’s listed subsidiary NGEL focuses on renewables, aiming at a capability of 60 GW by FY32F, with operational renewables to rise from 3.3 GW in FY24 to fifteen GW by FY27F.
NTPC’s main capability enlargement and secure money circulate makes it a prime funding in India’s power transition area. Our SOTP valuation highlights NTPC’s management and progress potential. The regulated thermal energy enterprise is valued at 1.55x FY26F BV, whereas subsidiaries and JVs are pegged at 1.9x FY26F regulated fairness per share with a 20 per cent holding firm low cost.
We provoke protection on NTPC with an ADD ranking and a SOTP-based goal value of ₹385 as a proxy play on India’s 900GW power transition.
Draw back dangers: Delay in plant commissioning, adjustments to CERC laws and discount in NGEL’s valuation.
