loader2
NRI

Open Free Trading Account Online with ICICIDIRECT

Incur '0' Brokerage upto ₹500

BLOG

NTPC: Capacity addition to gather momentum

ICICIdirect Research 02 Aug 2024 DISCLAIMER
  • NTPC reported robust Q1FY25 results. Gross generation and energy sold grew by 10.6% YoY (97.9 billion units) and 11% YoY (91.3 billion units) whereas the PLF of coal stations improved by 296 bps YoY to 80.4% in the quarter. The installed and commercial capacity as of Q1FY25 stood at 76048 MW each.
  • NTPC has been the only company which has added coal-based capacities and reached an installed base of 76000 MW. Going ahead, NTPC has ~21000 MW of capacities under construction out of which coal/Hydro and renewables stands at 9560/2255/9214 MW respectively. This we believe will lead to 11% generation growth supported by strong PLF’s (averaging above national level PLF’s) on thermal business and will help regulated equity growth at a CAGR of 9% from ₹ 87713 crore in FY24 to over ₹100000 crore by FY26E.
  • The company plans to reach 16000 MW of renewable capacity by FY27E. Currently, the company has 3500 MW of installed renewable capacity. It has also signed a supplementary JV agreement with NPCIL for development of nuclear power projects. Its also planning project of 2.8 GW capacity (Approximate Cost - 2017 level: ₹42,000 crore) and exploring SMR technology in collaboration with BARC.
  • Strong presence in the thermal power capacity and strong scale up in the renewable space makes NTPC as our top pick in the utility space. We maintain our BUY rating on NTPC target pegged at  ₹ 500 per share (based on 2.7x FY26E Book Value).
Download App

Download Our App

Play Store App Store
market app