NTPC Our calculations suggest full tax grossing in FY12E BUY::EMkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

NTPC

Our calculations suggest full tax grossing in FY12E

BUY

CMP: Rs 177                                       Target Price: Rs 204

---

n     Mgmt in the call said that on grossing up in FY12E (MAT or full), they would communicate after Q112E. Our calculations suggest grossing by full tax in FY12E (net benefit of Rs8bn)

n     Core ROE of 29% in FY11P was helped by prior yr + AAD sales of Rs15.3bn. Adj. core ROE stood at 25%, lower than 27% in FY10 - PAT impact of Rs6.6bn (has to be mainly due to UI)

n     Recent positive news flow - (1) raise in dispatch guidance by CIL, (2) Q4 PAT beat consensus, (3) Govt. to reconsider captive block issue & (4) 1,00,000 MW of cost plus PPAs 

n     Positive news to continue 1) FY12 grossing up, (2) higher COD in FY12-sunset yr of 80IA & (3) in medium term - acquiring distressed plants. Buy; rising interest rates remain overhang