NSEI:NTPC

Stock Analysis Report

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Executive Summary

NTPC Limited generates and sells bulk power to state power utilities in India.


Snowflake Analysis

Average dividend payer and slightly overvalued.

Share Price & News

How has NTPC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NTPC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.9%

NTPC

-5.2%

IN Renewable Energy

-1.1%

IN Market


1 Year Return

-31.7%

NTPC

-8.0%

IN Renewable Energy

-7.5%

IN Market

Return vs Industry: NTPC underperformed the Indian Renewable Energy industry which returned -8% over the past year.

Return vs Market: NTPC underperformed the Indian Market which returned -7.5% over the past year.


Shareholder returns

NTPCIndustryMarket
7 Day-4.9%-5.2%-1.1%
30 Day-6.5%-2.0%6.9%
90 Day-9.2%11.2%16.9%
1 Year-29.9%-31.7%-5.0%-8.0%-5.7%-7.5%
3 Year-30.7%-37.1%-32.9%-39.1%-1.1%-5.7%
5 Year-12.5%-24.8%-17.3%-28.4%24.2%14.5%

Price Volatility Vs. Market

How volatile is NTPC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NTPC undervalued compared to its fair value and its price relative to the market?

7.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NTPC (₹86.75) is trading above our estimate of fair value (₹75.13)

Significantly Below Fair Value: NTPC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NTPC is poor value based on its PE Ratio (7.4x) compared to the IN Renewable Energy industry average (4.3x).

PE vs Market: NTPC is good value based on its PE Ratio (7.4x) compared to the Indian market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: NTPC is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: NTPC is overvalued based on its PB Ratio (0.7x) compared to the IN Renewable Energy industry average (0.4x).


Next Steps

Future Growth

How is NTPC forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTPC's forecast earnings growth (14.3% per year) is above the savings rate (7.2%).

Earnings vs Market: NTPC's earnings (14.3% per year) are forecast to grow slower than the Indian market (19.3% per year).

High Growth Earnings: NTPC's earnings are forecast to grow, but not significantly.

Revenue vs Market: NTPC's revenue (9.8% per year) is forecast to grow faster than the Indian market (7.6% per year).

High Growth Revenue: NTPC's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTPC's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

How has NTPC performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTPC has a large one-off gain of ₹48.7B impacting its March 31 2020 financial results.

Growing Profit Margin: NTPC's current net profit margins (10.6%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: NTPC's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: NTPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTPC had negative earnings growth (-8.2%) over the past year, making it difficult to compare to the Renewable Energy industry average (4%).


Return on Equity

High ROE: NTPC's Return on Equity (9.7%) is considered low.


Next Steps

Financial Health

How is NTPC's financial position?


Financial Position Analysis

Short Term Liabilities: NTPC's short term assets (₹569.1B) do not cover its short term liabilities (₹643.4B).

Long Term Liabilities: NTPC's short term assets (₹569.1B) do not cover its long term liabilities (₹1,908.9B).


Debt to Equity History and Analysis

Debt Level: NTPC's debt to equity ratio (157.5%) is considered high.

Reducing Debt: NTPC's debt to equity ratio has increased from 123.7% to 157.5% over the past 5 years.

Debt Coverage: NTPC's debt is not well covered by operating cash flow (12.8%).

Interest Coverage: NTPC's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is NTPC current dividend yield, its reliability and sustainability?

3.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTPC's dividend (3.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.7%).

High Dividend: NTPC's dividend (3.63%) is in the top 25% of dividend payers in the Indian market (2.81%)


Stability and Growth of Payments

Stable Dividend: NTPC's dividend payments have been volatile in the past 10 years.

Growing Dividend: NTPC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), NTPC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTPC's dividends in 3 years are forecast to be well covered by earnings (44.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Gurdeep Singh (55yo)

4.42yrs

Tenure

₹15,227,053

Compensation

Mr. Gurdeep Singh has been Chairman and Managing Director of NTPC Ltd. (National Thermal Power Corporation Limited) since February 4, 2016 and its Director since January 29, 2016. Mr. Singh an illustrious  ...


CEO Compensation Analysis

Compensation vs Market: Gurdeep's total compensation ($USD202.69K) is below average for companies of similar size in the Indian market ($USD953.90K).

Compensation vs Earnings: Gurdeep's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gurdeep Singh
Chairman of the Board & MD4.42yrs₹15.23m0.000060% 522.7k
Nandini Sarkar
Company Secretary & Compliance Officer1.92yrs₹6.53mno data
Anand Gupta
Director of Commercial & Director3.42yrs₹8.85m0.000070% 609.9k
Anil Gautam
CFO, Director of Finance & Directorno datano datano data
V. Babu
Director of Operations & Executive Director0.17yrno datano data
Aditya Dar
Chief Investor Relations Officerno datano datano data
Dillip Patel
Director of HR & Executive Director0.25yrno datano data
Gopal Ravindra
Chief Executive Officer of UPLno datano datano data
Debasis Sarkar
Chief Executive Officer of NTECLno datano datano data
Sudarsan Chakrabarti
Chief Executive Officer of PVUNLno datano datano data
K. Singh
Regional Executive Director of Northern Regionno datano datano data
Dilip Dubey
Regional Executive Director of SRno datano datano data

0.9yrs

Average Tenure

56yo

Average Age

Experienced Management: NTPC's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gurdeep Singh
Chairman of the Board & MD4.42yrs₹15.23m0.000060% 522.7k
Anand Gupta
Director of Commercial & Director3.42yrs₹8.85m0.000070% 609.9k
Anil Gautam
CFO, Director of Finance & Directorno datano datano data
V. Babu
Director of Operations & Executive Director0.17yrno datano data
Dillip Patel
Director of HR & Executive Director0.25yrno datano data
Shashi Shekhar
Independent Director2.75yrs₹920.00k0.000010% 87.1k
Vinod Kumar
Independent Director2.75yrs₹1.02m0.000050% 435.6k
Pradeep Deb
Independent Director2.75yrs₹1.19mno data
Subhash Joshi
Independent Director2.75yrs₹840.00kno data
M. Singh
Independent Director2.75yrs₹320.00kno data
Vivek Dewangan
Government Nominee Director2.25yrsno datano data
K. P. Pillay
Independent Director2yrs₹500.00kno data

2.8yrs

Average Tenure

64yo

Average Age

Experienced Board: NTPC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NTPC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NTPC Limited
  • Ticker: NTPC
  • Exchange: NSEI
  • Founded: 1975
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: ₹871.216b
  • Shares outstanding: 9.89b
  • Website: https://www.ntpc.co.in

Number of Employees


Location

  • NTPC Limited
  • NTPC Bhawan
  • SCOPE Complex
  • New Delhi
  • Delhi
  • 110003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532555BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2004
NTPCNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2004

Biography

NTPC Limited generates and sells bulk power to state power utilities in India. It operates through Generation of Energy and Others segments. The company generates power from coal, gas, liquid fuel, hydro, solar, nuclear, wind, thermal, and renewable energy sources. It also offers consultancy, project management, and supervision services. In addition, the company is involved in the energy trading, oil and gas exploration, and coal mining activities. As of March 25, 2020, it had an installed power generation capacity of 58,816 MW. NTPC Limited was founded in 1975 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/16 12:36
End of Day Share Price2020/07/16 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.