FMP

FMP

Enter

Goldman Sachs (NYSE) has recently analyzed NTPC’s fourth-quarter performance for FY24, noting that the company's adjusted consolidated profit after tax (PAT) st

Goldman Sachs Review of NTPC’s Q4 Performance and Future Prospects

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Jordan Merrick

Goldman Sachs (NYSE) has recently analyzed NTPC's fourth-quarter performance for FY24, noting that the company's adjusted consolidated profit after tax (PAT) stood at Rs 53 billion, slightly below the estimated Rs 55 billion. This shortfall was attributed to higher-than-expected fixed cost under-recovery from operational issues at the Barh and Barauni power plants.

Renewable Energy and IPO Plans

NTPC's renewable energy portfolio has expanded significantly to 23.2 GW at various stages of development. The company plans to monetize this growth through an Initial Public Offering (IPO) by October-November 2024. Post-monetization, NTPC will continue to support the renewable segment's growth if needed, with the completion of these projects expected by FY27.

Coal and Nuclear Projects

NTPC's new coal project pipeline is robust, standing at 15.2 GW, with over 10 GW expected to be ordered in FY25. Additionally, NTPC is entering the nuclear energy sector, planning to order the 2.8 GW Mahi Banswara nuclear power plant in partnership with the Nuclear Power Corporation of India within the current fiscal year. This strategic move into nuclear energy is anticipated to ensure long-term growth stability for NTPC's core business after renewable business monetization.

Analyst Recommendations

Goldman Sachs maintains a 'Buy' rating for NTPC, despite a recent share price rally. Analysts predict further growth in the coal capacity pipeline by an additional 12 GW, enhancing the value derived from renewable business monetization. NTPC's stock is trading at a forward price-to-book value (P/BV) of 1.9x, which, while above its historical median, remains significantly lower than the 3.4-3.6x multiples of private sector peers like Tata Power (NS) and JSW Energy (NS).

Stay informed about companies' financial performance and health with FMP's Full Financial Statements As Reported API. Access comprehensive financial data and insights to make informed investment decisions. Click here to learn more.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep