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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532555 | NSE: NTPC

NTPC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:19 pm

Market Cap 3,55,577 Cr.
Current Price 367
High / Low448/249
Stock P/E16.1
Book Value 174
Dividend Yield2.11 %
ROCE10.5 %
ROE13.5 %
Face Value 10.0
PEG Ratio1.41

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for NTPC Ltd

Competitors of NTPC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IND Renewable Energy Ltd 17.1 Cr. 12.326.8/11.2571 18.70.00 %0.07 %0.34 % 10.0
GMR Power & Urban Infra Ltd 7,362 Cr. 103169/38.6 11.10.00 %11.4 %% 5.00
Gita Renewable Energy Ltd 66.2 Cr. 161310/107255 32.20.00 %2.71 %1.91 % 10.0
SJVN Ltd 41,589 Cr. 106170/80.245.0 37.21.70 %4.99 %5.90 % 10.0
Rattanindia Power Ltd 6,965 Cr. 13.021.1/7.90 8.300.00 %8.39 %% 10.0
Industry Average67,157.26 Cr258.5287.8997.230.78%8.58%10.68%8.22

All Competitor Stocks of NTPC Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales27,52630,10329,88832,40433,29337,08543,17744,17544,60244,25343,07544,98342,820
Expenses18,78522,65821,02623,42322,31925,65932,38133,80831,78332,31130,66432,30331,458
Operating Profit8,7417,4448,8628,98010,97411,42610,79610,36712,81911,94212,41112,68011,362
OPM %32%25%30%28%33%31%25%23%29%27%29%28%27%
Other Income1,9881,7851,5251,5187991,0277301,3807471,0849941,0242,532
Interest2,4572,0832,4652,2122,2322,4082,4772,6523,1682,8602,9222,9213,250
Depreciation3,0423,4573,2013,3143,4523,8213,5423,6873,7153,8483,8214,0384,074
Profit before tax5,2303,6894,7224,9726,0896,2245,5085,4086,6836,3186,6616,7466,571
Tax %26%-26%27%26%24%16%28%37%27%23%26%30%21%
Net Profit3,8764,6493,4443,6914,6265,2003,9783,4184,8544,8724,9074,7265,209
EPS in Rs3.884.683.523.714.645.334.063.444.935.015.034.765.32

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales65,23171,51878,33079,95773,39682,04288,083100,287109,464111,531132,669176,207175,132
Expenses49,93553,37058,60362,60554,82960,44565,59877,57677,86377,48492,307128,612126,736
Operating Profit15,29618,14919,72717,35218,56821,59822,48522,71031,60134,04740,36247,59548,396
OPM %23%25%25%22%25%26%26%23%29%31%30%27%28%
Other Income3,0884,7772,7922,3381,1881,5925,5762,8188,1945,0174,8092,5625,634
Interest2,1392,4913,2633,6693,3663,7534,4475,6058,1899,2249,37611,44711,952
Depreciation3,1073,8234,7705,5655,7716,0107,4608,66910,35612,45013,78814,79215,781
Profit before tax13,13716,61114,48610,45610,61813,42616,15411,25521,25017,39022,00723,91726,296
Tax %25%24%21%4%-2%20%35%-25%44%14%23%28%
Net Profit9,81512,58611,4039,99210,78110,71410,50214,03411,90214,96916,96017,12119,714
EPS in Rs9.9212.7211.5310.0910.9210.8310.6613.8811.7215.0917.2017.4420.12
Dividend Payout %34%38%42%21%26%37%40%44%27%41%41%42%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)28.23%-9.40%-12.37%7.90%-0.62%-1.98%33.63%-15.19%25.77%13.30%0.95%
Change in YoY Net Profit Growth (%)0.00%-37.63%-2.97%20.27%-8.52%-1.36%35.61%-48.82%40.96%-12.47%-12.35%

NTPC Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:17%
TTM:4%
Compounded Profit Growth
10 Years:6%
5 Years:7%
3 Years:10%
TTM:15%
Stock Price CAGR
10 Years:12%
5 Years:25%
3 Years:40%
1 Year:40%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:13%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:57 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital8,2458,2458,2458,2458,2458,2459,8959,8959,6979,6979,6979,6979,697
Reserves72,99579,08473,84983,33089,59395,318101,462108,945116,042125,677137,326151,013158,575
Borrowings70,41981,455102,25299,424113,773130,049173,058202,984210,208210,707222,913237,131242,009
Other Liabilities27,11631,33435,36633,66636,99048,88062,50955,74662,07569,75177,25381,43781,950
Total Liabilities178,776200,118219,712224,665248,601282,492346,923377,569398,022415,831447,189479,278492,230
Fixed Assets71,83384,20891,85392,929104,532128,245150,985187,803203,245224,923240,424258,934259,252
CWIP46,55553,82567,55575,04686,89683,386118,39798,50897,50691,12689,17987,66495,612
Investments4,9233,3001,9026,4737,6148,8768,1329,30710,58910,62613,93515,88516,500
Other Assets55,46558,78558,40350,21749,56061,98569,40981,95186,68189,156103,651116,795120,866
Total Assets178,776200,118219,712224,665248,601282,492346,923377,569398,022415,831447,189479,278492,230

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +16,50816,53114,88924,12520,16719,67018,68623,89032,44441,78847,15240,785
Cash from Investing Activity +-16,845-15,509-15,977-19,162-24,480-20,678-24,063-29,628-21,034-22,891-26,145-32,141
Cash from Financing Activity +988-2,709-1,474-3,8993,1381,0284,9276,004-11,049-19,172-21,217-8,246
Net Cash Flow651-1,687-2,5631,064-1,17619-451266360-274-210398

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow15.00-52.00-62.00-85.00-81.00-92.00-108.00-151.00-171.00-176.00-170.00-175.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days313142414037456892776268
Inventory Days
Days Payable
Cash Conversion Cycle313142414037456892776268
Working Capital Days-11-16-44-32-38-16-431834142647
ROCE %12%11%8%7%9%9%7%10%9%9%10%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%
FIIs14.54%14.74%14.00%14.97%15.67%15.61%15.80%16.69%17.05%17.86%17.68%18.60%
DIIs30.91%30.76%31.33%31.31%30.52%30.51%30.20%29.02%28.70%27.55%27.55%26.51%
Government0.17%0.17%0.17%0.10%0.10%0.10%0.10%0.10%0.10%0.11%0.11%0.11%
Public3.28%3.23%3.40%2.50%2.61%2.69%2.79%3.08%3.04%3.37%3.55%3.68%
No. of Shareholders9,26,6489,72,4659,90,9109,88,6259,74,1539,83,6069,86,67410,66,54311,58,99213,93,48017,67,13835,74,828

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF193,488,58818.266143.2683,774,4072024-11-18130.96%
SBI Nifty 50 ETF86,027,8121.592731.3883,774,4072024-11-182.69%
HDFC Balanced Advantage Fund - Regular Plan83,774,4073.452659.8483,774,4072024-11-180%
ICICI Prudential Equity & Debt Fund76,932,8037.832442.6283,774,4072024-11-18-8.17%
SBI S&P BSE Sensex ETF60,850,6651.841932.3183,774,4072024-11-18-27.36%
HDFC Top 100 Fund - Regular Plan54,669,7435.61735.7683,774,4072024-11-18-34.74%
ICICI Prudential Bharat 22 ETF54,021,09810.91715.4483,774,4072024-11-18-35.52%
ICICI Prudential Multi Asset Fund53,514,1635.181699.0783,774,4072024-11-18-36.12%
ICICI Prudential Value Discovery Fund51,109,7184.121622.7383,774,4072024-11-18-38.99%
HDFC Flexi Cap Fund - Regular Plan44,000,0002.93139783,774,4072024-11-18-47.48%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)21.4617.4417.2014.8711.72
Diluted EPS (Rs.)21.4617.8715.6614.8711.72
Cash EPS (Rs.)37.0232.1130.6627.5722.09
Book Value[Excl.RevalReserv]/Share (Rs.)170.29155.68143.49133.31123.46
Book Value[Incl.RevalReserv]/Share (Rs.)170.29155.68143.49133.31123.46
Revenue From Operations / Share (Rs.)184.08181.72136.82115.02110.63
PBDIT / Share (Rs.)55.4451.0543.9439.1834.81
PBIT / Share (Rs.)38.7335.7929.7226.3424.34
PBT / Share (Rs.)26.3024.2920.1115.2716.14
Net Profit / Share (Rs.)20.3116.8516.4414.7311.62
NP After MI And SOA / Share (Rs.)21.4617.4417.2015.0911.72
PBDIT Margin (%)30.1128.0932.1134.0631.46
PBIT Margin (%)21.0319.6921.7222.8922.00
PBT Margin (%)14.2813.3614.6913.2714.59
Net Profit Margin (%)11.039.2712.0112.8010.50
NP After MI And SOA Margin (%)11.659.5912.5613.1210.59
Return on Networth / Equity (%)12.9511.5012.3111.639.76
Return on Capital Employeed (%)9.939.688.537.847.74
Return On Assets (%)4.333.794.003.663.06
Long Term Debt / Equity (X)1.181.281.341.441.48
Total Debt / Equity (X)1.461.501.551.571.62
Asset Turnover Ratio (%)0.380.400.300.270.28
Current Ratio (X)0.950.920.900.930.97
Quick Ratio (X)0.780.760.770.790.81
Dividend Payout Ratio (NP) (%)34.9424.3623.2537.794.26
Dividend Payout Ratio (CP) (%)19.6412.9912.7320.422.25
Earning Retention Ratio (%)65.0675.6476.7562.2195.74
Cash Earning Retention Ratio (%)80.3687.0187.2779.5897.75
Interest Coverage Ratio (X)4.464.444.574.124.24
Interest Coverage Ratio (Post Tax) (X)2.552.502.552.511.82
Enterprise Value (Cr.)558365.60388721.24339714.15299593.49275991.35
EV / Net Operating Revenue (X)3.132.212.562.692.52
EV / EBITDA (X)10.397.857.977.898.01
MarketCap / Net Operating Revenue (X)1.820.960.980.920.76
Retention Ratios (%)65.0575.6376.7462.2095.73
Price / BV (X)2.031.160.960.820.70
Price / Net Operating Revenue (X)1.820.960.980.920.76
EarningsYield0.060.090.120.140.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NTPC Ltd as of November 21, 2024 is: 386.17

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, NTPC Ltd is Undervalued by 5.22% compared to the current share price 367.00

Intrinsic Value of NTPC Ltd as of November 21, 2024 is: 430.25

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, NTPC Ltd is Undervalued by 17.23% compared to the current share price 367.00

Last 5 Year EPS CAGR: 11.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -5.08, which is a positive sign.
  2. The company has shown consistent growth in sales (103.00 cr) and profit (16.31 cr) over the years.
  1. The stock has a low average ROCE of 9.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 52.83, which may not be favorable.
  3. The company has higher borrowings (161,260.15) compared to reserves (107,169.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NTPC Ltd:
    1. Net Profit Margin: 11.03%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.93% (Industry Average ROCE: 8.58%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.95% (Industry Average ROE: 10.68%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.55
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.78
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 16.1 (Industry average Stock P/E: 87.89)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.46
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

NTPC Ltd. is a Public Limited Listed company incorporated on 07/11/1975 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L40101DL1975GOI007966 and registration number is 007966. Currently Company is involved in the business activities of Electric power generation by coal based thermal power plants. Company’s Total Operating Revenue is Rs. 116137.33 Cr. and Equity Capital is Rs. 9696.67 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Generation/DistributionNTPC Bhawan, Scope Complex, New Delhi Delhi 110003csntpc@ntpc.co.in
http://www.ntpc.co.in
Management
NamePosition Held
Mr. Gurdeep SinghChairman & Managing Director
Mr. Shivam SrivastavaDirector
Mr. Jaikumar SrinivasanDirector - Finance
Mr. K Shanmugha SundaramDirector - Projects
Mr. Ravindra KumarDirector - Operations
Ms. Sangitha VarierIndependent Director
Mr. Jitendra Jayantilal TannaIndependent Director
Mr. Vidyadhar VaishampayanIndependent Director
Mr. Vivek GuptaIndependent Director
Mr. Piyush SinghGovernment Nominee Director

FAQ

What is the latest intrinsic value of NTPC Ltd?

The latest intrinsic value of NTPC Ltd as on 20 November 2024 is ₹386.17, which is 5.22% higher than the current market price of ₹367.00.

What is the Market Cap of NTPC Ltd?

The Market Cap of NTPC Ltd is 3,55,577 Cr..

What is the current Stock Price of NTPC Ltd as on 20 November 2024?

The current stock price of NTPC Ltd as on 20 November 2024 is ₹367.

What is the High / Low of NTPC Ltd stocks in FY 2024?

In FY 2024, the High / Low of NTPC Ltd stocks is 448/249.

What is the Stock P/E of NTPC Ltd?

The Stock P/E of NTPC Ltd is 16.1.

What is the Book Value of NTPC Ltd?

The Book Value of NTPC Ltd is 174.

What is the Dividend Yield of NTPC Ltd?

The Dividend Yield of NTPC Ltd is 2.11 %.

What is the ROCE of NTPC Ltd?

The ROCE of NTPC Ltd is 10.5 %.

What is the ROE of NTPC Ltd?

The ROE of NTPC Ltd is 13.5 %.

What is the Face Value of NTPC Ltd?

The Face Value of NTPC Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NTPC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE