NTPC Q1 Review — Motilal Oswal Maintains Neutral Stance Amid Execution, Yield Concerns

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

We reiterate our Neutral stance on NTPC Ltd. with a target price of Rs 380. After a 17% correction in the share price over the last 12 months, valuations at 11x FY27 P/E appear relatively reasonable, even as the long-term project pipeline continues to build up, supported by an expanding footprint in nuclear, PSP, renewables, and green chemicals.

However, we maintain a cautious view on execution, especially at NTPC Green Energy Ltd., even though management has guided that 87/80% of capacity slated to be commissioned in FY26/27 already has power purchase agreement tied up.

Further, we believe valuations for NGEL (15% of our SOTP) have little room for re-rating and may continue to face pressure. Lastly, we believe the FY27E dividend yield of 2.9% remains modest and lower than peers such as Power Grid (FY27: 3.4%).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.