NTPC –Accumulate- Kotak Securities
NTPC’s actual numbers are marginally higher than the provisional results and there is de-growth in PAT for Q4 mainly due to tax writeback in Q4 FY09.
Progress in capacity addition is the major value driver for utility stocks like NTPC. Herein, capacity addition has continued to lag, thereby affecting growth in earnings. Despite the underperformance over the past quarter, the stock trades at close to the higher end of its trading multiples.
We recommend investors to utilize further declines in the stock to buy from a long-term point of view. The company remains a defensive bet. We maintain ACCUMULATE with price target of Rs216.
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