NTPC In line, maintain estimates and Buy rating :Emkay

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

NTPC

In line, maintain estimates and Buy rating

BUY

CMP: Rs 179                                       Target Price: Rs 204

---

n     2Q12 PAT of Rs24.2bn is above est. mainly due to previous yr sales of Rs7.6bn. Adjusting for one offs (previous yr sales is not considered to be one-off), APAT stood at Rs25.4bn, in line

n     Has commissioned 660MW and commercialized 1,160MW in YTDFY12 against target commissioning of 4,320MW. Mgmt maintained its target in the concall. We reiterate FY12 is sunset yr of 80IA – expect positive surprises in COD

n     Highlights - (1) PAF of coal plants low at 83.4% but no under-recoveries as cumulative PAF for 1H12 above 85% level and (2) mgmt guided for 90%+ PAF in FY12. Maintain estimates   

n     Positive news to continue 1) higher COD in FY12-sunset yr of 80IA, (2) FY12/13 grossing & (3) in medium-term, acquiring distressed plants. Maintain Buy; Risk - rising interest rates