SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : NTPC Ltd

BSE: 532555 NSE: NTPC ISIN: INE733E01010
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Which industry/sub-sector does NTPC Ltd belong to?
NTPC Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.
Q.2 Is NTPC Ltd a good quality company?
NTPC Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is NTPC Ltd undervalued or overvalued?
NTPC Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is NTPC Ltd a good buy now?
NTPC Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NTPC Ltd?
NTPC Ltd revenue growth is 5.4% for FY-2025 , which is below its 5 year CAGR of 11.4% , indicating slower growth.
Q.2 Gross Profit margin of NTPC Ltd?
NTPC Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.2% for FY-2025 , which is in line with its 5 year median of 25.2% , indicating stable margins.
Q.3 Operating Profit Margin of NTPC Ltd?
NTPC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.39% for FY-2025 , which is in line with its 5 year median of 29.39% indicating stable margins.
Q.4 Net Profit Margin of NTPC Ltd?
NTPC Ltd Net Profit Margin is 12.84% for FY-2025 , is in line with with its 5 year median of 12.84%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 25.2 25.2
Operating Profit Margin 29.39 29.39
Net Profit Margin 12.84 12.84
Q.5 Return on Asset of NTPC Ltd?
NTPC Ltd Return on Asset is 4.64%, which is above its 5 year historical median of 4.07%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of NTPC Ltd?
NTPC Ltd Return on equity is 13.89% for FY-2025 , which is above its historical median of 12.99%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of NTPC Ltd?
NTPC Ltd Return on capital employed is 10.99% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of NTPC Ltd?
NTPC Ltd Cash conversion cycle is 73 days, above its historical median of 69 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.36 0.36
ROE 13.89 12.99
ROCE 10.99 9.91
Cash Conversion Cycle 73 days 69 days
Q.9 Debt to Equity ratio of NTPC Ltd?
NTPC Ltd Debt-to-Equity ratio is 1.35 , which is lower with the industry average of 1.61 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of NTPC Ltd?
NTPC Ltd Debt to cash flow from operations is 4.92 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NTPC Ltd?
Promoters hold 51.10% of the NTPC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NTPC Ltd vs industry peers?
NTPC Ltd revenue CAGR is 11.44% , compared to the industry median CAGR of 26.03% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,86,532.3 45,895.2
Gross Profit 47,006.1 17,833.9
Operating Profit 54,162 23,369.5
Net Profit 23,953 9,665.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.36 0.31
ROE 13.89 20.12
ROCE 10.99 11.42
Cash Conversion Cycle (days) 73.3 72

Valuation & price assessment

Q.1 Stock return of NTPC Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 13.2% 30.9% 32.4% 8.1%
Q.3 Valuation ratios of NTPC Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 15.67 16.29 32.46
Price to Book 1.93 0.86 1.75
Price to Sales 2.02 0.93 6.05
EV to EBITDA 10.81 8.26 12.85

Check more companies

1. Adani Power
2. NTPC
3. Power Grid Corp
4. Adani Green Energy
5. Adani Energy Solut.
6. Tata Power
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×