Investment Thesis on

NTPC Ltd
Rishabh Luthra 21BC188

To Be The World's Leading Power Company, Energizing India's Growth.

NTPC LIMITED: INDIA’S ENERGY GIANT
Maintaining Energy Leadership Revenue Growth (FY17 to FY23)
52 Week Range
2017
INR. 160- INR. 262
Total Installed Capacity 2018

1 3.
Segments
Plants (in MW) Stock Price (4th Oct’23)

5%
2019 INR. 234

CA
Coal 35 59474

GR
2020
Stock CAGR YoY
Gas/Liquid Fuel 11 6511
2021 63%
Hydro 9 3725
2022 Revenue FY23
Renewables 34 3314 INR. 1,78,768.90
Presence of 2023
NTPC Total 89 73024
0 50,000 100,000 150,000 200,000

Current Operation Mix- Projected Operation Mix- 2032

2023
Total Installed Capacity Total Electricity
Coal
in India (March 2023) Generated in India (FY23) C&I
Consumers
Hydro/ Consultancy
Coal
NTPC Group: 17% NTPC Group: 25% Renewables

Power Company Integrated

Energy Company Renewables
Nuclear

Co. ambitions to
Consultancy expands it’s operation mix, Green CCU
becoming the leader of Power Mobility
Rest of India: 83% Rest of India: 75%
Sector of India

Company Introduction Industry Analysis Peer Comps Analysis Risk Analysis Valuation Analysis
INDIAN POWER SECTOR AND NTPC POSITIONING
India’s GDP is expected to rise significantly in the coming years. India operates on a low Electricity demand as
compared to other nations, but the demand is expected to rise significantly by 2040.

India’s Per Capita Projected Energy Requirement and Peak

Consumption (kWh/year) Load Required
3000
3,000 4,000 3776

3095
575
3,000
2,000 2474

1908 465
1208 1255 2,000 366
1122 1511
957
1,000
277
1,000
216

0 0
2014 2017 2020 2022 2040P 2023 2027P 2032P 2037P 2042P
Per Capita Energy Consumption Peak Load Energy Requirement

Plant Load Factor (PLF) is a measure of capacity utilisation of an energy-producing plant and is considered as a key
measure to understand the efficiency of operations.
NTPC India Avg
77.9% 76.7%
80% 75.9%
68.2% 70.9%
66% 64.2%
60.7% 60.3%
55.9% 58.7%
60% 54.5%

40%

20%

0%
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23

NTPC plants have historically reported a higher PLF as compared to Indian average, a testament to companies high
efficiency

Company Introduction Industry Analysis Peer Comps Analysis Risk Analysis Valuation Analysis
PEER ANALYSIS AND
NTPC has a higher Dividend payout ratio as compared to it’s industry NTPC has a low P/E Ratio as compared to the industry average and peers, NTPC has a lower net profit margins as compared to its peers. However,
peers, indicating a risky bet, preferable for risk taking investors, indicating undervalued stocks and it’s ability to earn high revenues in the Net aMargins at par with the Industry average of 10%,
providing them with a steady income flow. near future.

Dividend Payout Ratio P/E Ratio Net Profit Margin

66.74%
73.02

33%
57.57

41,57%

Industry Average P/E: 33

22.2% 12%
19.16% Industry Average: 10%
24.41 9%
7%
10%
12 12.18
0%
.

NTPC PowerGrid Corp. Adani Energy Tata Power JSW Energy NTPC PowerGrid Corp. Adani Energy Tata Power JSW Energy NTPC PowerGrid Corp. Adani Energy Tata Power JSW Energy

Company Net Profit Margins Asset Turnover Leverage ROE %

NTPC 10% 0.41 2.93 12.02

Power Grid Corpn 33% 0.18 3.02 19.56

Adani Energy 9% 0.26 4.35 11.65

Tata Power Co. 7% 0.46 4.18 12.62

JSW Energy 12% 0.26 2.12 7.22

Company Introduction Industry Analysis Peer Comps Analysis Risk Analysis Valuation Analysis
 THANK YOU
Rishabh Luthra luthra.rishabh2003@gmail.com 21BC188 +91-98111-20708