NTPC Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹3,92,376 crore, PE ratio of 18.3, debt-to-equity ratio of 1.48, and return on equity of 13.6%. These figures reflect the company’s financial health and current market valuation.
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NTPC Ltd Overview
NTPC Ltd, established in 1975, is India’s largest power utility, specializing in thermal power generation. Over the years, it diversified into hydro, nuclear, and renewable energy, playing a pivotal role in India’s energy sector.
The company has a market capitalization of ₹2,68,212 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 22.4% below its 52-week high and 153% above its 52-week low.
NTPC Financial Results
NTPC Ltd’s financial results for FY 2024 showed a sales increase to ₹1,78,501 crore from ₹1,32,669 crore in FY 2022. Net profit rose to ₹21,332 crore from ₹16,960 crore in FY 2022, highlighting steady growth.
- Revenue Trend: NTPC’s revenue grew from ₹1,32,669 crore in FY 2022 to ₹1,78,501 crore in FY 2024. This steady increase, with FY 2023 revenue at ₹1,76,207 crore, reflects the company’s expanding operational scale.
- Equity and Liabilities: Equity capital stood at ₹9,697 Crores in FY24, with reserves increasing to ₹1,40,188 Crores. Total liabilities increased to ₹3,93,530 Crores from ₹3,83,877 Crores in FY23, indicating a growing financial base.
- Profitability: Operating profit rose from ₹40,280 crore in FY 2022 to ₹51,093 crore in FY 2024, with FY 2023 at ₹47,729 crore. The OPM, however, slightly decreased from 30% in FY 2022 to 29% in FY 2024.
- Earnings Per Share (EPS): EPS improved from ₹17.2 in FY 2022 to ₹21.46 in FY 2024, showing consistent growth. In FY 2023, EPS stood at ₹17.44, reflecting NTPC’s profitability and shareholder value.
- Return on Net Worth (RoNW): NTPC’s Return on Net Worth (RoNW) slightly increased to 13% in FY24 from 12.6% in FY23, suggesting a modest improvement in returns on shareholders’ equity, and overall profitability remained stable.
- Financial Position: EBITDA grew from ₹42,605 crore in FY 2022 to ₹53,758 crore in FY 2024, with FY 2023 at ₹49,499 crore. Interest expenses increased from ₹9,316 crore in FY 2022 to ₹12,048 crore in FY 2024, with FY 2023 at ₹11,156 crore, impacting net profitability.
NTPC Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 1,78,501 | 1,76,207 | 1,32,669 |
| Expenses | 1,27,408 | 1,28,478 | 92,390 |
| Operating Profit | 51,093 | 47,729 | 40,280 |
| OPM % | 29 | 27 | 30 |
| Other Income | 2,665 | 1,770 | 2,325 |
| EBITDA | 53,758 | 49,499 | 42,605 |
| Interest | 12,048 | 11,156 | 9,316 |
| Depreciation | 16,204 | 14,792 | 13,788 |
| Profit Before Tax | 25,506 | 23,551 | 19,501 |
| Tax % | 26.7 | 28.86 | 25.88 |
| Net Profit | 21,332 | 17,121 | 16,960 |
| EPS | 21.46 | 17.44 | 17.2 |
| Dividend Payout % | 36.11 | 41.57 | 40.7 |
*All values in ₹ Crores
NTPC Company Metrics
NTPC Ltd has a market cap of ₹3,92,376 crore and a current price of ₹405. The stock has a P/E ratio of 18.3 and a net profit of ₹21,931 crore, with an ROE of 13.6% and a 1.90% dividend yield.
- Market Cap: NTPC Ltd boasts a market cap of ₹3,92,376 crore, highlighting its prominent position in the energy sector.
- Book Value: NTPC’s book value is ₹166, indicating the per-share equity value based on its financials.
- Face Value: The face value of NTPC’s shares is ₹10.0, representing the nominal value.
- Turnover: NTPC’s asset turnover ratio is 0.39, reflecting the company’s efficiency in generating revenue from its assets.
- PE Ratio: NTPC has a P/E ratio of 18.3, indicating the stock’s pricing relative to its earnings. This suggests that investors expect steady earnings growth in the future.
- Debt: NTPC carries a significant debt load of ₹2,37,131 crore, with a debt-to-equity ratio of 1.48. Despite high leverage, the company’s strong earnings and asset base balance its financial structure.
- ROE: NTPC’s return on equity (ROE) is 13.6%, showcasing the company’s efficiency in generating profit from shareholders’ equity.
- EBITDA Margin: NTPC has an EBITDA margin of 28.0%, indicating strong operational profitability before accounting for interest, taxes, depreciation, and amortization, demonstrating efficient cost management.
- Dividend Yield: NTPC offers a dividend yield of 1.90%, providing investors with a modest income return through dividends, complementing potential capital appreciation.
NTPC Stock Performance
Over five years, the return is 28%, increasing to 53% over three years and 84% over the past year, showing significant growth acceleration in recent times.
| Period | Return on Investment (%) |
| 5 Years: | 28% |
| 3 Years: | 53% |
| 1 Year: | 84% |
Examples:
1. A ₹1,00,000 investment returned ₹1,28,000 over five years.
2. A ₹1,00,000 investment grew to ₹1,53,000 over three years.
3. A ₹1,00,000 investment yielded ₹1,84,000 in the past year.
NTPC Peer Comparison
NTPC, with a market cap of ₹3,92,375.56 Crores, leads in market cap compared to competitors like Power Grid Corp (₹3,09,942.62 Crores) and Adani Green (₹3,01,671.06 Crores). Competitors vary in stock price and growth rates.
| Sl No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | NTPC | 404.65 | 392375.56 | 2.68 | 9.07 | 84.46 |
| 2 | Power Grid Corpn | 333.25 | 309942.62 | 2.33 | 5.6 | 79.83 |
| 3 | Adani Green | 1904.45 | 301671.06 | 6.21 | -0.3 | 97.72 |
| 4 | Adani Power | 691.8 | 266823.06 | 0.19 | -1.68 | 115.32 |
| 5 | Tata Power Co. | 423.25 | 135242.77 | 0.5 | -5.08 | 72.84 |
| 6 | Adani Energy Sol | 1085.5 | 130399.19 | 8.98 | -1.65 | 22.24 |
| 7 | JSW Energy | 706.15 | 123418.72 | 3.2 | 19.85 | 101.48 |
NTPC Shareholding Pattern
The shareholding pattern of NTPC shows consistent promoter ownership at 51.1% across all periods. FIIs hold between 16.69% and 17.86%, while DIIs’ share ranges from 27.55% to 29.02%. Retail and others hold between 3.14% and 3.66%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 51.1 | 51.1 | 51.1 | 51.1 |
| FII | 17.68 | 17.86 | 17.05 | 16.69 |
| DII | 27.55 | 27.55 | 28.7 | 29.02 |
| Retail & others | 3.66 | 3.48 | 3.14 | 3.18 |
*All values in %
NTPC History
NTPC Limited, originally incorporated as National Thermal Power Corporation Private Limited on November 7, 1975, evolved from a private entity into a public limited company in 1985. Over time, NTPC diversified its operations beyond thermal power to include hydro, nuclear, and renewable energy, reflecting its broadening scope.
The company’s early milestones include the management takeover of the Badarpur project in 1978 and the commissioning of its first 200MW unit at Singrauli in 1982. By 1994, NTPC had achieved 15,000 MW of installed capacity, signaling its rapid growth in India’s power sector.
In 2005, NTPC officially dropped “Thermal” from its name, underscoring its diversification. The company expanded internationally with euro bonds and forayed into coal mining and oil exploration, further solidifying its position. NTPC continued to grow, reaching significant milestones such as surpassing 58,000 MW in installed capacity by 2019.
The company also made strides in sustainable energy, winning awards for sustainability and launching green hydrogen projects. In recent years, NTPC has focused on renewable energy and international collaborations, marking its transition into a global energy player. The company remains a leader in India’s energy sector, driving innovation and growth.
How To Invest In NTPC Ltd Share?
Investing in NTPC Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for NTPC Ltd shares and place your buy order.
NTPC Limited Fundamental Analysis – FAQs
NTPC Ltd’s fundamental analysis reveals a market capitalization of ₹3,92,376 crore, a PE ratio of 18.3, a debt-to-equity ratio of 1.48, and a return on equity of 13.6%, indicating its financial stability and market valuation.
The market capitalization of NTPC is ₹3,92,376 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
NTPC Limited is India’s largest power generation company, specializing in thermal and renewable energy. It operates across the country, providing electricity to millions, and is known for its significant role in India’s energy sector and infrastructure development.
NTPC Limited is owned by the Government of India, which holds a majority stake in the company. It is a state-owned enterprise under the Ministry of Power, responsible for generating electricity and contributing to national energy security.
The main shareholders of NTPC Limited are the Government of India, holding a majority stake, and institutional investors such as foreign institutional investors (FII) and domestic institutional investors (DII). Retail investors and others hold the remaining shares.
NTPC is a state-owned enterprise in the power generation industry. It focuses on producing and supplying electricity, primarily from thermal and renewable sources, serving both industrial and residential sectors across India.
To invest in NTPC shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if NTPC India is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
