NTPC Ltd - Q4FY20 Result Update - ICICI Securities

NTPC reported operationally decent Q4FY20 results. Despite lockdown impact in March 2020, the company posted better generation data vis-à-vis expectations. NTPC met its capacity addition target in FY20 and has aggressive additions plans in FY21-22E. Optically, PAT looks below estimates, which is on account of higher tax outgo on account of settlement of previous tax disputes to the tune of Rs. 2660 crore under the Vivad se Vishwas scheme.

Valuation & Outlook

Though thermal capacity addition is expected to see a significant decline post FY23-24, addition of renewable capacity is expected to gain momentum in the same period. We would still like to see the execution roadmap of the company in the renewable space. Valuations are 0.7x P/BV on FY22E. We would wait to turn buyers when some aggression is visible in renewable capacity addition.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_NTPC_Q4FY20.pdf

Shares of NTPC LTD. was last trading in BSE at Rs.93.55 as compared to the previous close of Rs. 95.85. The total number of shares traded during the day was 855790 in over 6378 trades.

The stock hit an intraday high of Rs. 95.4 and intraday low of 92.35. The net turnover during the day was Rs. 79711272.

Source : Equity Bulls

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