NTPC.NS
NTPC Limited remains a prominent player in India's energy sector with a notable market capitalization of ₹4,021.46 billion. The stock's Price-to-Earnings (P/E) ratio is 20.87, reflecting a balanced investor sentiment concerning its earnings in relation to its current share price. The Return on Equity (ROE) stands at 13.66%, indicating a reasonable efficiency in generating returns on shareholders' investments. However, the company's debt-to-equity ratio of 139.96 suggests that NTPC heavily relies on debt financing to support its growth and operations, which may pose a potential risk if not managed effectively.
Despite a slightly low current ratio of 0.93, which implies a tight margin in covering short-term liabilities, NTPC manages to maintain an operating margin of 16.65%. This highlights the company's capability to sustain profitability in its routine operations. However, it is important to note that NTPC currently has a negative free cash flow of -₹149.67 billion, which could limit its ability to invest in future projects without resorting to additional financing.
NTPC's earning growth rate stands at a promising 14.3%, reflecting optimism for potential future earnings despite a slight decline in revenue growth at -0.6%. This could be attributed to market challenges or increased competition within the sector. Nonetheless, NTPC maintains a solid EBITDA margin of 27.36%, signifying an effective operating profit structure.
The company's price-to-book ratio of 2.37 suggests investors are paying more for NTPC’s net asset value per share, indicating expectations of growth or operational efficiencies. Moreover, with 36.16% of shares held by institutional investors, there appears to be strong external confidence in NTPC's potential future performance.
This analysis offers valuable insights into NTPC's financial standing and operational environment within the energy sector, aiding potential investors in evaluating the stock's potential for long-term returns while weighing associated risks.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 3116.03 B |
| P/E Ratio | 16.31 |
| ROE | 13.66 % |
| Debt to Equity | 139.959 |
| Operating Margin | 16.64 % |
| Free Cash Flow | -149665693696 |
| Institutional Holdings | 36.47 % |
| Revenue Growth | -0.60 % |
NTPC's Competitive Landscape Across Various Segments:
- Thermal Power Generation: NTPC competes with state-owned enterprises and private companies in the thermal power generation sector.
- Renewable Energy: As the world shifts towards cleaner energy, NTPC faces competition in the renewable energy space.
- Hydropower: NTPC competes against companies with significant hydroelectric projects in its hydro segment.
NTPC remains a dominant force in India's power sector due to its extensive operational experience, large power generation capacity, and strategic expansion into renewables. However, it must navigate challenges like increased competition in renewable energy and regulatory pressures towards cleaner alternatives. For investors, NTPC offers a stable investment with growth potential as it diversifies its energy mix.
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