{"id":277238,"date":"2019-06-03T06:28:06","date_gmt":"2019-06-03T06:28:06","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=277238"},"modified":"2019-06-03T06:28:06","modified_gmt":"2019-06-03T06:28:06","slug":"ntpc-rating-buy-better-days-lie-ahead-for-the-company","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/ntpc-rating-buy-better-days-lie-ahead-for-the-company\/","title":{"rendered":"NTPC Rating | Buy \u2014 Better days lie ahead for the company"},"content":{"rendered":"<p>NTPC reported Q4FY19 replete with adjustments but broadly in line with our Ebitda estimate of `61 bn. Management expects capacity commercialisation of 5 GW at the group level (4.5 GW at Standalone) in FY20 (our estimate: 4 GW) to be spread over the year and not be backended. Having reined in fixed cost under-recovery to `8 bn in FY19 (down from `14 bn in FY18), management is confident it would further trend down in FY20 on the back of better coal supply management aided by a ramp-up in captive coal supply and imports.<\/p>\n<p>We believe high power demand, commercialisation of capacity, recoupment of under-recoveries, etc would lift PAT CAGR to 16% over FY19\u201321e (flat over FY14\u201319). Working capital and coal availability are key variables. Maintain Buy with an SoTP-based TP of `158 (23% upside potential) as we roll forward the valuation to September 2020e.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NTPC reported Q4FY19 replete with adjustments but broadly in line with our Ebitda estimate of `61 bn. Management expects capacity commercialisation of 5 GW at the group level (4.5 GW at Standalone) in FY20 (our estimate: 4 GW) to be spread over the year and not be backended. Having reined in fixed cost under-recovery to `8 bn in FY19 (down from `14 bn in FY18), management is confident it would further trend down in FY20 on the back of better coal supply management aided by a ramp-up in captive coal supply and imports. We believe high power demand, commercialisation of [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-277238","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=277238"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/277238\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=277238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=277238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=277238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}