NTPC Limited was formerly known as National Thermal Power Corporation Limited. It is an undertaking by the Government of India, primarily focusing on power generation and other allied activities. The company is headquartered in New Delhi.
As of March 2018, NTPC has a market capitalisation of about Rs.1,40,000 crore.
Wealth and recent performance
Q1 FY 2018-19
- For the quarter ended on June 30, 2018, NTPC Limited reported total revenue to be at Rs.22,840 crore. With respect to the June quarter of the previous financial year, this marked an increase of roughly 10%.
- This increase in the revenue was offset by an equal increase in the expenditure for the quarter. Consequently, the profitability of the company was impacted and it failed to show an improvement over the same quarter of the previous year.
- For the Q1 FY 2018-19, NTPC Limited profit to be at Rs.2,588 crore, in comparison to a profit of Rs.2,618.1 crore reported for the quarter ended on June 30, 2017. As a result, its earnings per share (EPS) also reduced from Rs.3.18 to Rs.3.14 y-o-y.
- For the year ended on March 31, 2018, NTPC Limited stated its consolidated revenue from operations to be Rs.88,083.3 crore. Along with the other income, the company’s total income was stated to be at Rs.89,641.5 crore, in comparison to Rs.83,009 crore reported for the previous fiscal year.
- Considering the company’s consolidated profit for the year, it was disclosed to be at Rs.10,501.5 crore, as against a profit of Rs.10,713.9 crore reported for the financial year 2016-17.
- On a y-o-y basis, the earnings per share of the company reduced from Rs.13 to Rs.12.79. In addition to this, the company’s net worth also increased from Rs.97,281 crore to Rs.1,02,932 crore. As for its debt equity ratio, it was stated to be 1.20 as against 1.14 reported for the year ended on March 31, 2017.
Q3 FY 2017-18
- According to the unaudited standalone financial results for the third quarter of the financial year ending 2017–2018, the total revenue of the company was Rs.21,087.84 crore. This was an increase from the total revenue in the previous quarter during which total revenue stood at Rs.19,960.35 crore.
- In the third quarter of the FY17, the company had a total revenue of Rs.19,646.09 crore.
- The total expenses incurred by the company in the third quarter of the FY18 was Rs.18,443.75 crore which was up from the total expenses incurred by the company in the previous quarter at Rs.16,890.66 crore.
- In the third quarter of the FY17, the company incurred a total expense of Rs.16,538.35 crore.
- The company showed a profit of Rs.2,584.78 crore before tax in the third quarter of the FY18 whereas it was Rs.3,222.77 crore in the previous quarter.
- In the third quarter of the FY17, the company showed a profit of Rs.3,082.54 crore before tax.
- The profit after tax for the third quarter of the FY 18 was Rs.2,360.81 crore and the same for the second quarter of FY18 was Rs.2,438.60 crore.
- The profit after tax for the third quarter of the previous financial year was Rs.2,469.26 crore.
Stock trend in 2018
- In January 2018, NTPC’s stock opened at about Rs.176. The stock remained largely at around Rs.174 and Rs.172 and the stock remained over Rs.170 till the last two days of the month. During the last two days, the stock dropped to about Rs.170.
- In February 2018, the stock dropped below Rs.170, opening at about Rs.169. The stock lost about Rs.4 in the next day to reach about Rs.165. The stock then touched a slight high of Rs.166. This was the highest price of the stock for the rest of the month. The stock remained below Rs.165 for the most part of the month. The stock closed at about Rs.163 for the end of the month.
- In March 2018, the stock opened at about Rs.163. For the first week of the month, the stock remained at that price, finally going above it in the second week. The stock spiked to a high of about Rs.171 in the month, below which price it continued for the rest of the month.
- The stock price of NTPC rose slightly over the course of April to ascend back to its previous levels at Rs.170. On April 18, the shares hit a high of Rs.180 during its trading session. However, this bullish behaviour followed by a bear run over the course of next couple of months.
- The closing price of the NTPC shares at the end of April was Rs.172.15 on the NSE. The stocks shed marginally in the month of May to close at Rs.165.30 on May 30, 2018. In June, the scrip lost roughly 10% to descend onto the levels above Rs.150. A similar trend was seen in the month of July as well, wherein the shares traded hands at levels varying from Rs.150 - Rs.158. In the same month, the shares hit their 52-week low at Rs.149.50.
- The NTPC share price recovered in the month of August to reach its previous levels at Rs.160. In early September, the company announced a final dividend of 23.9% - which happened to be the second dividend for the year. As for early September, the shares were seen trading hands at levels above Rs.165.
Stock history (2016–2017)
- NTPC’s stock opened at about Rs.144 in January 2016. The stock declined in price for a week, dropping to about Rs.137. The stock gained again over the course of the second week. The stock continued on an alternating path of increases and decreases over the rest of the month. The stock closed at about Rs.142 for the month. The stock opened at about Rs.140 in February and remained well below that price for the rest of the month. On 5 February 2016, the company announced an interim 16% dividend. After this announcement, the stock’s highest price for the month was about Rs.129. The stock declined to less than Rs.120 and closed for the month at about Rs.118. The stock regained a value over Rs.120 in March 2016, to open at about Rs.122. This was followed by an increase to about Rs.126. The stock then fluctuated between Rs.126 and Rs.129 for the rest of the month. The closing price for the month was about Rs.128.
- In April 2016, the stock opened at about Rs.129. The stock declined in price for the first week but gained a lot in price after that. The highest price for the month was about Rs.143. After this, the stock could not maintain a price of over Rs.140. Eventually, the stock closed at about Rs.139 for the month. The stock opened at about Rs.138 for the month of May 2016. Towards the end of the month, the stock gained a little to close at about Rs.143. In June, the stock opened at about Rs.144. Then, the stock gained in small increments throughout the month of June, closing at about Rs.156. The entire month was not a period of gain but towards the end, the stock gained a lot.
- The stock opened at about Rs.156 in July 2016. The stock fluctuated between Rs.156 and Rs.152 for the rest of the month, gaining towards the end. The stock closed at about Rs.158 for the month of July 2016. The stock opened at about Rs.159 in August 2016. The stock achieved a peak of about Rs.166 in the same month. Then, the stock dipped to close for the month at about Rs.159. The stock opened at about Rs.158 in September 2016. On 8 September 2016, the company announced a final 18% dividend. The stock saw a decline in prices after the dividend announcement. While the stock did not decline in price throughout the rest of the month, the stock declined more than it gained, thus closing at about Rs.148 for the month of September.
- The stock opened at about Rs.150 for the month of October 2016. The stock dipped to about Rs.144 by the end of the second week. After this, the stock continued on a steady path of gain, closing at about Rs.151 at the end of the month. In November, the stock opened at about Rs.155. The stock touched a high of about Rs.164 in that month and closed for the month at about Rs.163. In December 2016, the stock opened at about Rs.161. After this, the highest price the stock reached was about Rs.165 and the lowest was about Rs.159 for the rest of the month. The stock closed at about Rs.164 by the end of the month.
- The stock opened at about Rs.164 in January 2017. Until about 10 January, 2017, the stock declined by about Rs.2. The stock rose after this to breach the Rs.170 mark. The stock dropped below Rs.170 only once for the rest of the month and even then, the stock remained at about Rs.169. Finally, the stock closed at about Rs.172 for the month. The stock opened at about Rs.170 in the month of February in 2017. The stock remained at over Rs.170 for the most part, only dropping in price in the last week of the month. On 15 February, 2017, the company announced an interim dividend of 26%. The stock closed for the month at about Rs.162. In March 2017, the stock opened below Rs.160. Then, for the first two weeks of March, the stock remained below Rs.160. After this, the stock gained in price to close at about Rs.166 by the end of the month.
- The stock opened about Rs.2 less in April 2017, at about Rs.164. The stock increased to about Rs.168 in the first month but declined sharply after that to reach a low of about Rs.159. The stock then regained its position over Rs.160 and remained so for the rest of the month. The stock closed at about Rs.164 for the end of the month. In May 2017, the stock opened at about Rs.164. Then, the stock declined in price till about 26 May, 2017. The stock regained a little in price to close at about Rs.160 for the end of the month. The stock continued at that price in the beginning of June 2017. But the stock dropped below Rs.160 till the end of the second week. The stock gained a price of over Rs.160 after that but it was fleeting. The stock dropped down again to below Rs.160 and did not breach that mark again for the rest of the month. The stock closed at about Rs.158 at the end of the month.
- The stock opened at about Rs.156 in July. The stock indicated an upward trend till about the end of the third week of the month with a peak of Rs.167. The stock then dipped slightly to end the month at about Rs.163. In August 2017, the stock opened at about Rs.165. In a few days, the stock achieved a peak of about Rs.177. The stock then fluctuated between Rs.167 and Rs.177, eventually ending the month at about Rs.168. This was the same price at which the stock opened at for the month of September 2017. At the end of the first week of the month, the company announced a final 22% dividend. This was followed by a lot of fluctuation in prices with a decline. The lowest price of the stock after the dividend announcement was about Rs.165 for the month. The stock closed at about Rs.167 for the month.
- The stock opened at about Rs.167 in October 2017. The stock gained over the first week. The highest price for the first week was about Rs.176. The stock then moved to a high of about Rs.178. This was followed by a slight decline but the stock peaked at about Rs.184 in the last week of the month. The stock dipped by Rs.3 after that, gradually, to close for the month at about Rs.181. The stock dipped by almost a rupee in the beginning of November, to open at about Rs.180. November saw a decline in prices and by the end of the second week, the stock had touched about Rs.174. After this, the stock gained for the rest of the next week, touching a peak of about Rs.182. This was followed by another peak of about Rs.186. The stock then dropped to close for the month at about Rs.181. This is the same price the stock opened at for December 2017. The stock declined to about Rs.175 in the first week. The stock then remained at or below Rs.180 for the rest of the month. The stock closed at about Rs.177 at the end of the month.
Should one invest in NTPC?
- NTPC is a Maharatna company indicating that it is a company that has performed well for a number of years. The Maharatna status is conferred by the Government of India on companies that have an excellent track record of performance.
- The company contributes to over 25% of the total power generated in India.
- The company, in collaboration with other Government of India owned enterprises, acquired a 65% stake in a coal mine in Mozambique.
- The company also operates in Sri Lanka and Bangladesh.
- The company also diversified into hydro-electric power plants and solar and wind power plants.
- This shows that the company is focusing more on renewable energy sources in order to ensure sustainable growth in the future.
- The company has MoUs signed with Sri Lanka and Japan for power generation in addition to Bangladesh.
- The company aims to set up a power plant in Nigeria.
- All of these points indicate that the company is in a strong position to show tremendous growth.
- While a number of reasons can be stated as to why one should buy NTPC stocks, it would be better to perform personal research based on financial constraints and risk appetites before investing.
NTPC is owned by the Government of India and it is involved in electricity generation and other related activities. It sells electricity to the State Electricity Boards in India. It is also the largest company in power production with a total power generation capacity of about 5,14,100 MW. In 2010, the Government of India designated the company as a Maharatna company. The company aims to produce power at high efficiency levels. It has an efficiency rate of about 80% compared to the national average of about 64%. Recently, the company has ventured into coal mining and oil and gas exploration. The company’s largest coal-powered plant is the Vindhyachal Super Thermal Power Station with a capacity of 4,760 MW. Through joint ventures, the company has a total installed coal-based power generation capability of over 9,000 MW. Through gas-based thermal power plants, the company has a total installed power generation capability of over 4,000 MW. Using solar photovoltaic power plants, the company has a total installed power generation capacity of 870 MW.
NTPC was incorporated in the year 1975. In 1976, Mr. D. V Kapur took over NTPC as the first Chairman and Managing Director. The first plant project was cleared in Uttar Pradesh in 1976. In 1977 the company landed its first major contract. In 1978, the company began construction of its first power transmission network. The company made a profit of Rs.4.51 crore in the financial year spanning 1982–1983. In 1987, the company exceeded 5,000 MW in installed capacity. In 1989, the company launched its consultancy division. In 1990, the company exceeded 10,000 MW in installed capacity. In 1997, the company was identified as a Navratna company. It became a listed company in 2004. In 2005, NTPC was changed to NTPC Limited.
Mr. Gurdeep Singh is the Chairman and Managing Director of NTPC. Mr. S. Roy is the Director of HR and is additionally the Director of Finance. The other Directors are—Mr. A. K. Gupta (Commercial), Mr. Susanta Kumar Roy (Projects), Mr. P. K. Mohapatra (Technical), and Mr. Prakash Tiwari (Operations). The Joint Secretary for Thermal is Mr. Aniruddh Kumar. Other than these key people, NTPC has seven Independent Directors.
NTPC’s shares are traded on the BSE and the NSE.
BSE: 532555; NSE: NTPCEQ; ISIN code: INE733E01010; Sector: Power; Industry: Power – Generation/Distribution
NTPC also forms a part of indices like, Nifty 50, MCX-SX 40 Index, Nifty50 USD, et cetera.
It is also listed on the MCX Stock Exchange.
Institutional Area, Lodhi Road,
New Delhi – 110 003
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