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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of NTPC Ltd

About the Company - NTPC Ltd

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 110003ntpccc@ntpc.co.in
http://www.ntpc.co.in
Management
NamePosition Held
Mr. Gurdeep SinghChairman & Managing Director
Mr. Dillip Kumar PatelDirector - Human Resources
Mr. V Ramesh BabuDirector - Operations
Mr. Ujjwal Kanti BhattachryaDirector - Projects
Mr. Ashish UpadhyayaGovernment Nominee Director
Mr. Jaikumar SrinivasanDirector - Finance
Mr. Piyush SinghGovernment Nominee Director
Ms. Sangitha VarierIndependent Director
Mr. Jitendra Jayantilal TannaIndependent Director
Mr. Vidyadhar VaishampayanIndependent Director
Mr. Vivek GuptaIndependent Director
Mr. Shivam SrivastavaDirector

NTPC Ltd. Share Price Update

Share PriceValue
Today₹337.10
Previous Day₹339.55

Basic Stock Data of NTPC Ltd

Market Cap 3,23,044 Cr.
Current Price 333
High / Low348/167
Stock P/E16.5
Book Value 158
Dividend Yield2.17 %
ROCE9.83 %
ROE12.0 %
Face Value 10.0

Data Source: screener.in

Competitors of NTPC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Reliance Infrastructure Ltd 9,087 Cr. 229252/117 2420.00 %8.95 %0.67 % 10.0
Adani Green Energy Ltd 3,07,302 Cr. 1,9401,992/439187 50.10.00 %7.81 %22.8 % 10.0
Tata Power Company Ltd 1,21,135 Cr. 379413/18235.4 94.30.53 %11.7 %12.6 % 1.00
Reliance Power Ltd 9,833 Cr. 25.833.2/9.05 34.30.00 %3.42 %11.8 % 10.0
SJVN Ltd 47,216 Cr. 120170/30.452.8 36.51.49 %9.27 %10.3 % 10.0
Industry Average13.8 Cr150.9655.0491.440.4%8.23%11.63%8.2

NTPC Ltd Quarterly Results

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

NTPC Ltd Quarterly Chart

NTPC Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales65,23171,51878,33079,95773,39682,04288,083100,287109,464111,531132,669176,207176,913
Expenses49,93553,37058,60362,60554,82960,44565,59877,57677,86377,48492,307128,612127,061
Operating Profit15,29618,14919,72717,35218,56821,59822,48522,71031,60134,04740,36247,59549,852
OPM %23%25%25%22%25%26%26%23%29%31%30%27%28%
Other Income3,0884,7772,7922,3381,1881,5925,5762,8188,1945,0174,8092,5623,849
Interest2,1392,4913,2633,6693,3663,7534,4475,6058,1899,2249,37611,44711,871
Depreciation3,1073,8234,7705,5655,7716,0107,4608,66910,35612,45013,78814,79215,422
Profit before tax13,13716,61114,48610,45610,61813,42616,15411,25521,25017,39022,00723,91726,409
Tax %25%24%21%4%-2%20%35%-25%44%14%23%28%
Net Profit9,81512,58611,4039,99210,78110,71410,50214,03411,90214,96916,96017,12119,359
EPS in Rs9.9212.7211.5310.0910.9210.8310.6613.8811.7215.0917.2017.4419.73
Dividend Payout %34%38%42%21%26%37%40%44%27%41%41%42%

NTPC Ltd Profit & Loss Yearly Chart

NTPC Ltd Growth

Compounded Sales Growth
10 Years:9%
5 Years:15%
3 Years:17%
TTM:4%
Compounded Profit Growth
10 Years:4%
5 Years:9%
3 Years:19%
TTM:13%
Stock Price CAGR
10 Years:13%
5 Years:24%
3 Years:49%
1 Year:99%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:12%
Last Year:12%

NTPC Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital8,2458,2458,2458,2458,2458,2458,2459,8959,8959,6979,6979,6979,697
Reserves66,15772,99579,08473,84983,33089,59395,318101,462108,945116,042125,677137,326143,980
Borrowings59,80470,41981,455102,25299,424113,773130,049173,058202,984210,208210,707221,626222,552
Other Liabilities21,04927,11631,33435,36633,66636,99048,88062,50955,74662,07569,75176,64877,910
Total Liabilities155,255178,776200,118219,712224,665248,601282,492346,923377,569398,022415,831445,297454,139
Fixed Assets51,13171,83384,20891,85392,929104,532128,245150,985187,803203,245224,923240,424249,717
CWIP50,39846,55553,82567,55575,04686,89683,386118,39798,50897,50691,12689,17983,014
Investments6,5454,9233,3001,9026,4737,6148,8768,1329,30710,58910,62613,93515,067
Other Assets47,18055,46558,78558,40350,21749,56061,98569,40981,95186,68189,156101,759106,341
Total Assets155,255178,776200,118219,712224,665248,601282,492346,923377,569398,022415,831445,297454,139

NTPC Ltd Reserves and Borrowings Chart

NTPC Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 11,39716,50816,53114,88924,12520,16719,67018,68623,89032,44441,78840,052
Cash from Investing Activity -9,583-16,845-15,509-15,977-19,162-24,480-20,678-24,063-29,628-21,034-22,891-26,107
Cash from Financing Activity -1,583988-2,709-1,474-3,8993,1381,0284,9276,004-11,049-19,172-14,154
Net Cash Flow231651-1,687-2,5631,064-1,17619-451266360-274-210

NTPC Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days373131424140374568927760
Inventory Days
Days Payable
Cash Conversion Cycle373131424140374568927760
Working Capital Days5-11-16-44-32-38-16-4318341423
ROCE %12%12%11%8%7%9%9%7%10%9%9%10%

NTPC Ltd Financial Efficiency Indicators Chart

NTPC Ltd Share Holding Pattern

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Promoters51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%51.10%
FIIs12.32%11.94%13.13%13.48%14.54%14.74%14.00%14.97%15.67%15.61%15.80%16.69%
DIIs33.45%33.93%32.93%31.98%30.91%30.76%31.33%31.31%30.52%30.51%30.20%29.02%
Government0.14%0.14%0.09%0.21%0.17%0.17%0.17%0.10%0.10%0.10%0.10%0.10%
Public2.99%2.89%2.76%3.23%3.28%3.23%3.40%2.50%2.61%2.69%2.79%3.08%
No. of Shareholders7,56,2887,79,6098,05,6937,86,8309,26,6489,72,4659,90,9109,88,6259,74,1539,83,6069,86,67410,66,543

NTPC Ltd Shareholding Pattern Chart

No. of NTPC Ltd Shareholders

NTPC Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India CPSE ETF20704506219.695410.09
HDFC Balanced Advantage Fund - Regular Plan913061783.492385.83
HDFC Flexi Cap Fund - Regular Plan900000005.562351.7
SBI Nifty 50 ETF881456451.412303.25
ICICI Prudential Equity & Debt Fund796328037.432080.81
SBI S&P BSE Sensex ETF621496191.621623.97
ICICI Prudential Multi Asset Fund572941635.361497.1
HDFC Top 100 Fund - Regular Plan546697435.161428.52
ICICI Prudential Value Discovery Fund543047184.041418.98
ICICI Prudential Bharat 22 ETF5291146810.671382.58

NTPC Ltd ROCE Trend

NTPC Ltd EPS Trend

NTPC Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)17.4417.2014.8711.7213.88
Diluted EPS (Rs.)17.8715.6614.8711.7213.88
Cash EPS (Rs.)32.1130.6627.5722.0922.27
Book Value[Excl.RevalReserv]/Share (Rs.)155.68143.49133.31123.46115.48
Book Value[Incl.RevalReserv]/Share (Rs.)155.68143.49133.31123.46115.48
Revenue From Operations / Share (Rs.)181.72136.82115.02110.63101.36
PBDIT / Share (Rs.)51.0543.9439.1834.8129.23
PBIT / Share (Rs.)35.7929.7226.3424.3420.47
PBT / Share (Rs.)24.2920.1115.2716.1414.81
Net Profit / Share (Rs.)16.8516.4414.7311.6213.50
NP After MI And SOA / Share (Rs.)17.4417.2015.0911.7213.88
PBDIT Margin (%)28.0932.1134.0631.4628.84
PBIT Margin (%)19.6921.7222.8922.0020.20
PBT Margin (%)13.3614.6913.2714.5914.61
Net Profit Margin (%)9.2712.0112.8010.5013.32
NP After MI And SOA Margin (%)9.5912.5613.1210.5913.69
Return on Networth / Equity (%)11.5012.3111.639.7612.33
Return on Capital Employeed (%)9.688.537.847.747.54
Return On Assets (%)3.794.003.663.063.96
Long Term Debt / Equity (X)1.281.341.441.481.32
Total Debt / Equity (X)1.501.551.571.621.48
Asset Turnover Ratio (%)0.400.300.270.280.31
Current Ratio (X)0.920.900.930.970.66
Quick Ratio (X)0.760.770.790.810.55
Dividend Payout Ratio (NP) (%)24.3623.2537.794.2621.98
Dividend Payout Ratio (CP) (%)12.9912.7320.422.2513.47
Earning Retention Ratio (%)75.6476.7562.2195.7478.02
Cash Earning Retention Ratio (%)87.0187.2779.5897.7586.53
Interest Coverage Ratio (X)4.444.574.124.245.16
Interest Coverage Ratio (Post Tax) (X)2.502.552.511.824.11
Enterprise Value (Cr.)388721.24339714.15299593.49275991.35298330.20
EV / Net Operating Revenue (X)2.212.562.692.522.97
EV / EBITDA (X)7.857.977.898.0110.31
MarketCap / Net Operating Revenue (X)0.960.980.920.761.34
Retention Ratios (%)75.6376.7462.2095.7378.01
Price / BV (X)1.160.960.820.701.20
Price / Net Operating Revenue (X)0.960.980.920.761.34
EarningsYield0.090.120.140.130.10

NTPC Ltd Profitability Ratios (%)

NTPC Ltd Liquidity Ratios

NTPC Ltd Liquidity Ratios (%)

NTPC Ltd Interest Coverage Ratios (%)

NTPC Ltd Valuation Ratios

Fair Value / Intrinsic Value of NTPC Ltd Stock

Fair Value: ₹319.63

The stock is overvalued by 4.02% compared to the current price ₹333

*Investments are subject to market risks

Strength and Weakness of NTPC Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -8.83, which is a positive sign.
  2. The company has shown consistent growth in sales (103.08 cr) and profit (16.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 27.33 and average Dividend Yield of 21.30%.
  2. The stock has a low average ROCE of 9.42%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 50.08, which may not be favorable.
  4. The company has higher borrowings (146,023.92) compared to reserves (99,519.85), which may suggest financial risk.

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