NTPC, founded in 1975, is a pioneer in India’s energy sector, exhibiting quality, creativity, and sustainability. Formerly known as National Thermal Power Corporation, NTPC Limited is a central public sector undertaking in India that generates energy and engages in other operations.
NTPC is owned by the Ministry of Power and the Government of India. The PSU’s main office is located in New Delhi and now holds 51.1% of its equity shares. NTPC is meeting the rising need for energy with the use of cutting-edge technologies and Gurdeep Singh’s expertise in the power sector.
NTPC Financial Analysis
A great achievement by NTPC is being a part of multiple indices like Nifty 50, Nifty 500, S&P BSE Sensex 50.
NTPC Limited reported earnings results for the second quarter and half year ended September 30, 2023. In the following table, we have included the company’s financial stats for the year 2023. You can take a look and compare the stats on a quarterly basis.
| Category | March 2023 | June 2023 | Sep 2023 | Dec 2023 |
| Sales | Rs. 41,317.86 Crores | Rs. 39,122.25 Crores | Rs. 40,875.32 Crores | Rs. 39,455.28 Crores |
| Expenses | Rs. 33002 Crores | Rs. 33805 Crores | Rs. 31011 Crores | Rs. 33600 Crores |
| Operating Profit | Rs. 39,455.28 Crores | Rs. 40,875.32 Crores | Rs. 39,122.25 Crores | Rs. 41,317.86 Crores |
| Basic Earning per Share | 5.85 | 4.19 | 4.01 | 4.71 |
NTPC Share Price
As of April ‘24, NTPC share price is trading around Rs. 340+. Go through the following NTPC share price chart to better understand its recent market trends. Charts are helpful for understanding how a company is performing.
NTPC has a TTM P/E ratio of 15.46 as compared to the sector P/E of 21.26. Around 21 analysts have initiated coverage on NTPC. 10 analysts have given it a strong buy rating, & 8 analysts have given it a buy rating. There are 2 analysts who have given the stock a sell rating.
Should One Invest in NTPC Stocks?
NTPC is predicted to grow earnings and revenue by 8.5% and 6% per year. EPS is expected to grow by 8.6% per year. The return on equity is forecast to be 13.2% in 3 years.
As of April’ 2024, the fundamentals of NTPC are outperforming and look strong.
The estimated DCF Value of one NTPC stock is 181.46 INR and compared to the current market price of NTPC share of 348.50 INR, the stock is overvalued by 48%. Therefore, NTPC surely can be a good buy but one should precisely look at the other parameters, such as valuation, price momentum, news, & corporate governance, and/or consult an investment advisor before making an investment decision!
The Bottom Line
NTPC is a prime example of excellence in the power generation industry, blending operational skills, sustainability, and innovation. Its share price is influenced by financial performance and regulatory dynamics, allowing investors to confidently navigate the market, seize opportunities, and optimize profits.
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