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ICICI Securities maintains buy on NTPC, target price Rs 165

NTPC has underperformed the Nifty by 17% over the last six months despite a 17% adjusted profit growth in first half of FY20, which is in-line with full year estimates and has partly recovered the underperformance

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Last Updated: Dec 16, 2019, 08.51 AM IST|Original: Dec 16, 2019, 08.39 AM IST
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ICICI Securities has maintained buy rating on NTPC in the long term with a target price of Rs 165. The stock ended up 1% at Rs 115.60 on Friday while BSE Sensex closed 428.00 points up at 41,009.71.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 24459.70 crore, down -5.67 % from last quarter sales of Rs 25931.11 crore and up 4.76% from last year same quarter sales of Rs 23347.95 crore. The company has reported net profit after tax of Rs 3285.01 Crore in latest quarter.

The company’s top management includes Dr.Bhim Singh, Dr.K P Kylasanatha Pillay, Mr.Anand Kumar Gupta, Mr.Anil Kumar Gautam, Mr.Gurdeep Singh, Mr.M P Singh, Mr.Pradeep Kumar Deb, Mr.Prakash Tiwari, Mr.Saptarshi Roy, Mr.Shashi Shekhar, Mr.Subhash Joshi, Mr.Vinod Kumar, Mr.Vivek Kumar Dewangan. Company has T R Chadha & Co. LLP as its auditors As on 30-09-2019, the company has a total of 9,894,557,280 shares outstanding.

Investment Rationale

NTPC has underperformed the Nifty by 17% over the last six months despite a 17% adjusted profit growth in first half of FY20, which is in-line with full year estimates and has partly recovered the underperformance in the first quarter of FY20, said ICICI Securities. Although the government has not announced the list of companies or sectors which will be considered by the government to reduce stake in, the overhang of the proposal has weighed in on shares of NTPC despite core business performance remaining strong, said ICICI Securities.
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