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NTPC Ltd Stock Analysis

Large Cap
Evaluated by 9553 users | BSE: 532555 | NSE: NTPC |
Power Generation/Distribution

NTPC is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with presence in the entire value chain of the power generation business. From fossil fuels...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
NTPC Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.47%8.84%9.68%8.67%7.61%7.48%6.42%6.33%6.44%5.87%
Value Creation Index 0.720.610.760.580.380.360.170.150.170.07
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 55,06362,05265,73772,01973,23770,11577,57482,57189,40396,768
Y-o-Y Gr. Rt.-12.7%5.9%9.6%1.7%-4.3%10.6%6.4%8.3%8.2%
Adjusted EPS (Rs.) 9.229.3411.5911.0910.41119.9510.812.0710.93
Y-o-Y Gr. Rt.-1.3%24.1%-4.3%-6.1%5.7%-9.6%8.5%11.8%-9.4%
Book Value per Share (Rs.) 68.1572.6981.2485.3582.5392.2796.06101.59107.04112.22
Adjusted Net Profit 9,1229,24311,46410,97210,30010,8819,84710,69011,94410,816
Net Op. Cash Flow (Rs. Cr.) 11,08510,71015,49515,73214,23523,98720,01419,25016,15722,014
Debt to Cash Flow from Ops 3.974.833.834.376.143.885.346.328.847.57
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
NTPC Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.5%5.7%7.7%8.2%
Adjusted EPS 1.9%1%3.2%-9.4%
Book Value per Share 5.76.35.34.8
Share Price -3.5% -2.5% -11% 11.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 1413.0914.9213.212.312.5810.510.811.429.79
Operating Profit Margin (%) 21.7822.0125.9624.7921.5825.7327.3526.9921.4329.06
Net Profit Margin (%) 16.5714.917.4415.2314.0615.5212.6912.9513.3611.18
Debt to Equity 0.650.720.740.811.071.021.121.211.351.5
Working Capital Days 173183211216221234215240263276
Cash Conversion Cycle 9111813263938322739
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.10%
Institutions 45.91%
Non-Institutions 2.99%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of NTPC Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that NTPC Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of NTPC Ltd's performance infers:

NTPC Ltd earnings have grown by 1%, whereas share price has depreciated -2.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of NTPC Ltd share prices over the last 10 years. Here is what we found out:

NTPC Ltd share price has depreciated -4.2% annually over the past ten years.

NTPC is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with presence in the entire value chain of the power generation business. From fossil fuels it has forayed into generating electricity via hydro, nuclear and renewable energy sources. This foray will play a major role in lowering its carbon footprint by reducing green house gas emissions. To

NTPC is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with presence in the entire value chain of the power generation business. From fossil fuels it has forayed into generating electricity via hydro, nuclear and renewable energy sources. This foray will play a major role in lowering its carbon footprint by reducing green house gas emissions. To strengthen its core business, the corporation has diversified into the fields of consultancy, power trading, training of power professionals, rural electrification, ash utilisation and coal mining as well.

NTPC became a Maharatna company in May 2010. As of January 2020, there are 10 Maharatnas CPSEs in India. NTPC is ranked No. 2 Independent Power Producer (IPP) in Platts Top 250 Global Energy Company rankings.

Business area of the company

NTPC is mainly engaged in generation and sale of electricity. The corporation has also diversified into the fields of consultancy, power trading, training of power professionals, rural electrification, ash utilisation and coal mining as well.

Awards and Achievements

NTPC has been conferred various awards from time to time including:

  • ASSOCHAM Corporate Governance Excellence Award- 2014-15 for Listed Companies in PSU category in recognition for outstanding governance practices undertaken by the Company.
  • ‘Golden Peacock Global Award for Excellence in Corporate Governance’ by World Council for Corporate Governance for the year 2014. This award was also received by the Company during the years 2007, 2009 and 2012.
  • Award for Excellence 2011 - Good Corporate Citizen Award by PHD Chamber of Commerce and Industry.
  • ‘ICSI National Award for Excellence in Corporate Governance-2009 by the Institute of Company Secretaries of India
  • NTPC won the prestigious CII-ITC Sustainability Award 2019 and was honoured with Outstanding Accomplishment in the Corporate Excellence Category, wherein assessment is done at company level. Also, the company received Commendation for Significant Achievement in the Domain Excellence category of Corporate Social Responsibility. The recognition has been bestowed on NTPC by CII-ITC Centre of Excellence for Sustainable Development at the 14th CII-ITC Sustainability Awards 2019.
  • NTPC has been selected as a 2020 ATD BEST award winner by The Association for Talent Development (ATD), USA. The award recognizes employee talent development practices that affect enterprise-wide success. NTPC has bagged this award for the 4th time in succession.
  • General (retd.) Dr. V.K. Singh, Union Minister of State for Road Transport and Highways, GOI presented the Best Performing Power Generation Company Award to NTPC at the Dun & Bradstreet Infra 2019 Awards.
  • NTPC has been ranked 14 in 2019 ‘Great Place to Work’ rankings for India. NTPC is also ranked best in the PSU category and among organization with more than 10,000 employees category. NTPC constantly feature in the list for 11 years in a row.
  • NTPC has been conferred with ‘FAME Best CSR Award 2019’ in Diamond Category for Excellence in Best Innovative CSR Project on June 2, 2019.
  • NTPC along with TCS was adjudged winner of 14th edition of the BML Munjal Awards in the Sustained Excellence category in New Delhi. The award was given for Sustained Business Excellence through best Learning and Development practices.
  • NTPC’s JV wins AIMA Chanakya NMG 2020 National Championship in 2020
  • NTPC ranks first among Indian PSUs in Forbes' 'World's Best Employer 2020'

History and milestones

1975

  • Incorporated on November 7

1976

  • Shri D.V Kapur took over on March 19 as the first Chairman & Managing Director of NTPC
  • On December 8, the Government of India cleared NTPC's first pithead Super thermal power project at Singrauli in Uttar Pradesh
  • The authorised share capital of the company was Rs125 crore

1977

  • NTPC required the first path of land at Singrauli in September
  • The first batch of executive trainees joined in the Company
  • The first Major contract of Rs.57.5 million was awarded for site leaving work at Singrauli in June

1978

  • NTPC-Korba and NTPC-Ramagundam projects cleared by GoI in January and February, respectively
  • Hon. Prime Minister Shri Morarji Desai laid the Foundation Stone for NTPC Ramagundam on 14 November

1979

  • Government of India approved the implementation of Farakka Project in March
  • The authorised share capital of the company rose from Rs.125 crore to Rs 300 crore

1980

  • Former Soviet Union offered to assist in seeting up of power stations. Vidhayachal was identified as the first project for such assistance
  • The authorized share capital was raised from Rs 300 crore to Rs 800 crore in June

1981

  • On 29 December, Hon. Prime Minister Smt. Indira Gandhi, laid the Foundation Stone of NTPC-Farakka

1982

  • On 12 November, Hon. Prime Minister Smt. Indira Gandhi laid the Foundation Stone of NTPC-Vindhyachal. Shri AK Sah, CMD, NTPC, was also present

1983

  • NTPC-Ramagundam became operational on 26 November by commissioning its frst 200 MW Unit

1984

  • The transmission line based on HVDC (High Voltage Direct Current) technology, commission for power transmission from Rihand to Delhi
  • Singrauli project received a World Bank loan USD 150 million through the Government of India

1985

  • In December, GoI approved the setting up of 3 gas-based combined-cycle projects by NTPC at Kawas (Gujarat), Auraiya (Uttar Pradesh) and Anta (Rajasthan). For these projects, the World Bank agreed to provide US$485 million, which was the largest single loan in the history of the bank

1986

  • Shri ML Shishoo, CMD, NTPC, reviewing Rihand with power ministry officials

1987

  • Crossed the 5000 MW installed capacity mark
  • Korba also entered the 500 MW phase by synchronising its first 500 MW unit on May 31

1988

  • Raised first syndicated Japanese loan of 30 billion JPY
  • Rihand entered the Operational phase by commissioning its first 500 MW unit on March 31
  • The first 500 MW unit Ramagundam was commissioned on June 26

1989

  • Consultancy division launched
  • First unit (88 MW) of first gas based combined cycle power plant at Anta, Rajasthan commissioned

1990

  • Prime Minister Shram Awards presented by Hon. Prime Minister Shri Chandra Shekhar

1991

  • Vindhyachal recorded completion of stage I activities by synchronising its sixth and last 210 MW unit in February
  • The first unit of NTPC (Dadri) was commissioned on December 21

1992

  • Pursuant to legislation by the Parliament of India, the transmission systems owned by the company was transferred to Power Grid Corporation Limited

1993

  • For the first time, IBRD extended direct loan of USD 400 million under time slice concept for its projects

1994

  • Jhanor-Gandhar(Gujarat)becomes the first thermal power station to have commissioned an integrated Liquid Waste Treatment Plant (LWTP)

1995

  • NTPC celebrated 20 years (1975-1995) of its existence. Various programmes were organised to mark its twentieth anniversary
  • On July 25th, the new campus of Power Management Institute (PMI) was inaugurated by Shri N.K.P. Salve, Union Minister of Power

1996

  • Continuous running of sixth unit (210 MW)of Ramagundam for 406 days for the first time in India
  • PLF of Talcher Thermal reached 43.7% from 18.7% at the time of takeover

1997

  • Hon. Prime Minister Shri IK Gujral laid the Foundation Stone of NTPCFaridabad on 3 August.

1998

  • Commissioned the first Naptha based plant at Kayamkulam with a capacity of 350 Mw

1999

  • Dadri Thermal Power Project, Uttar Pradesh adjudged the best in India with a PLF of 96.12%
  • Dadri, Uttar Pradesh certified with ISO-14001 on October 7

2000

  • Commenced construction of a first hydro-electric power project of 800MW capacity in Himachal Pradesh

2001

  • NTPC-Vindhyachal’s 2,260 MW unit was dedicated to the nation in July; Shri CP Jain, CMD, NTPC, graced the occasion.

2002

  • Three wholly owned subsidiaries of NTPC viz. NTPC Electric Supply Company Limited,NTPC Hydro Limited and NTPC Vidyut Vyapar Nigam Limited incorporated
  • Crossed the 20000 MW installed capacity mark

2003

  • Participated in ‘Mission-2012 Power for All’ launched by GoI
  • Tripartite Agreement (TPA) was signed with Reserve Bank of India

2004

  • Contract for the frst Super Critical Thermal Power Plant at Sipat awarded

2005

  • International Project Management Award for NTPCSimhadri, at the International Project Management Association World Congress. NTPC was the only Asian company to receive this award

2006

  • Hon. Prime Minister Shri Manmohan Singh laid the Foundation Stone of NTPCBongaigaon on 16 January

2007

  • 765 KV switchyard transmission system energized at Sipat, the largest in the country. Hon. Union Minister of Power Shri Sushil Kumar Shinde, Power Secretary, Shri RV Shahi, Hon. Chief Minister, Chhattisgarh Shri Raman Singh and Shri T Sankaralingam, CMD, NTPC, at the occasion with officials.

2008

  • Shri RS Sharma, CMD, NTPC, addressing the media, where he spoke on NTPC’s achievements and future plans

2009

  • NTPC Energy Technology Research Alliance (NETRA), NTPC’s Research & Development wing, set up

2010

  • NTPC-Dadri Unit-V successfully commissioned. This is the first unit planned to provide power to Commonwealth Games to be organized in Delhi in October 2010

2014

  • Dedication of Mouda Super Thermal Power Station Stage I by Hon'ble Prime Minister Narendra Modi on August 21, 2014

2015

  • On 2 November, Hon. Union Minister of Power Shri Piyush Goyal honoured Shri AK Jha, CMD, NTPC, for NTPC’s contribution towards Swachh Vidyalaya Abhiyan, by successfully constructing toilets across 17 states, covering 83 districts of India
  • 29,000 toilets constructed under Swachh Bharat Abhiyan

2016

  • PM Laid Foundation Stone for Telangana STPP Phase-1
  • NTPC-Dadri bagged Top Plant 2016 Award, by Power Magazine of USA in the Coal-fred Generation category
  • Hon. Prime Minister Shri Narendra Modi dedicated NTPC-Koldam to the nation on 18 October

2017

  • Received the SCOPE Award for RTI Act, 2005 Compliance at SCOPE Meritorious Awards, in New Delhi from Hon. President Shri Pranab Mukherjee

2018

  • Hon. Prime Minister Shri Narendra Modi dedicated NTPC-Dulanga to the nation on 22 September.
  • Hon. Prime Minister Shri Narendra Modi laid the Foundation Stone of NTPC-Patratu on 25 May

2019

  • On January 4 in New Delhi, NTPC was awarded ‘Best Performing Utility of the Country in Thermal Power Sector’ by Central Board of Irrigation and Power (CBIP). Shri RK Singh, Hon. Union Minister of State I/C for Power and New & Renewable Energy, presented the award to Shri Gurdeep Singh, CMD, NTPC
  • The 2,000th coal rake from NTPC-Pakri Barwadih ?agged off on January 12
  • Shri AK Bhalla, Secretary, Power, inaugurated the Techno Galaxy Exhibition at IPS-2019 in Raipur. Shri Gurdeep Singh, CMD, NTPC, was also present. The exhibition showcased technologies and products by 42 Indian and international manufacturers
  • Achieved 6.81 MMT of coal production from Pakri-Barwadih. Production has crossed the mine plan target. The mine started coal production from April 1, 2019

2020

  • NTPC’s arm commissions Unit1 of 150 MW of Kameng Hydro Electric Project
  • NTPC bags consultancy project for 500 MW solar park from Republic of Mali
  • NTPC signs MoU with IOC & SDMC
  • NTPC’s JV signs agreement with Noida Authority to install EV charging stations
  • NTPC enters into pact with NIIF to explore business opportunities in India
  • NTPC commissions 800 MW Unit-2 of Lara Super Thermal Power Project
  • NTPC’s arm signs MoU with Greenko Energies
  • Inks MoU with Ministry of Power
  • Inks foreign currency loan agreement with JBIC
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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