Check Before You Invest : NTPC Ltd

Q: 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: Is NTPC Ltd a good quality company?

NTPC Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is NTPC Ltd undervalued or overvalued?

NTPC Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 16.13, Historic Median: 12.15. Price to Book, Current: 1.99, Historic Median: 1.76. Price to Sales, Current: 2.08, Historic Median: 1.73. EV to EBITDA, Current: 11, Historic Median: 9.92

Q: Is NTPC Ltd a good buy now?

NTPC Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of NTPC Ltd?

NTPC Ltd revenue growth is 5.4% for FY-2025, which is below its 5-year CAGR of 11.44%, indicating slower growth.

Q: 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: 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: Net Profit Margin of NTPC Ltd?

NTPC Ltd Net Profit Margin is 12.84% for FY-2025, is in line with its 5-year median of 12.84%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 25.2, Historic Median: 25.2. Operating Profit Margin (%), Current: 29.39, Historic Median: 29.39. Net Profit Margin (%), Current: 12.84, Historic Median: 12.84

Q: 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: Return on capital employed (ROCE) of NTPC Ltd?

NTPC Ltd Return on capital employed is 10.99% for FY-2025, which is above its 5-year historical median of 9.91%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Check Before You Invest : NTPC Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is NTPC Ltd undervalued or overvalued?

NTPC Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	16.13	12.15
Price to Book	1.99	1.76
Price to Sales	2.08	1.73
EV to EBITDA	11	9.92

Q.4 Is NTPC Ltd a good buy now?

NTPC Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 11.44%, 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 its 5-year median of 12.84%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	25.2	25.2
Operating Profit Margin (%)	29.39	29.39
Net Profit Margin (%)	12.84	12.84

B: Does the business utilize capital efficiently?

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 capital employed (ROCE) of NTPC Ltd?

NTPC Ltd Return on capital employed is 10.99% for FY-2025, which is above its 5-year historical median of 9.91%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of NTPC Ltd?

NTPC Ltd Return on equity is 13.89% for FY-2025, which is above its 5-year historical median of 12.99%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of NTPC Ltd?

NTPC Ltd Cash conversion cycle is 73 days, above its 5-year historical median of 69 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.36	0.36
ROE (%)	13.89	12.99
ROCE (%)	10.99	9.91
Cash Conversion Cycle	73 days	69 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of NTPC Ltd?

NTPC Ltd Debt-to-Equity ratio is 1.35, which is above the industry average of 0.44, indicating higher 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

D: Promoter shareholding and pledge status of NTPC Ltd?

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)

E: How does NTPC Ltd performance compare with that of its Peers?

Q.1 Revenue growth of NTPC Ltd vs industry peers?

NTPC Ltd revenue CAGR is 11.44%, compared to the industry median CAGR of 17.64%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	5.4	17.6
Gross Profit Growth (%)	11	21.8
Operating Profit Growth (%)	8.5	11.7
Net Profit Growth (%)	12.3	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.36	0.27
ROE (%)	13.89	16.15
ROCE (%)	10.99	11.23
Cash Conversion Cycle (days)	73.3	68

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 12.9% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	12.9%	30.8%	31.7%	20.2%

Q.2 Valuation ratios of NTPC Ltd vs historical?

The current P/E ratio of 16.13 is higher than its historical median of 12.15, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	16.13	12.15	27.37
Price to Book	1.99	1.76	1.82
Price to Sales	2.08	1.73	6.75
EV to EBITDA	11	9.92	13.61

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Check Before You Invest : NTPC Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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