NTPC - 3QFY13 Results Update - Motilal Oswal

Rising RoE to drive valuations high; upside of 23%

- FY13 marks the beginning of a growth era for NTPC. Over FY13-16, we expect it to add 13GW of capacity - an average of 3.3GW/year v/s historic average of 1.5-2GW/year.

- It is well placed on the fuel front, with targeted coal production from captive mines scaling up from no contribution in FY13 to ~37mtpa by FY17.

- 19% earnings CAGR, 240bp RoE expansion are key triggers for re-rating.

Source : Equity Bulls

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