NTPC

Emkay Global Financial Services has recommended accumulate rating on NTPC with a target of Ra 220 in its July 26, 2010 research report.

“NTPC’s Revenues grew by 8% yoy driven by flat volumes and 7.5% realization growth. Volumes flat due to Kahalgaon (2340MW) and Farakka (1600MW) operating at 61.5% and 73.7% PLF EBITDA/PAT declined by 8%/16% yoy mainly due to underrecovery of capacity charges of Kahalgaon & Farakka led by lower than target (85%) utilizations (might be forced outages) Forced outages most likely one time; more clarity in the analyst meet on 2nd  august; to review earnings (Rs 11.2/12.8 in FY11E/12E) post analyst meet Valuations reasonable at 2.2xFY12E Book Value with core ROE of 28%, Maintain accumulate and price target of Rs 220,” says Emkay Global Financial Services research report.