NTPC - Ahead of peers - Kotak

We upgrade NTPC to BUY (from ADD previously) with a target price of Rs. 160 as the CMP ignores the inherent strengths of the company relative to peers- (1) disproportionate allocation of coal due to proximity to coal mines, (2) higher off-take due to low-cost take or pay arrangements, and (3) consistent earnings growth with continued investment in new projects. At 1.1X P/B, NTPC trades at a 45% discount to historical trading multiples, ignoring the inherent strengths of the company.

Source : Equity Bulls

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