NTPC
Reco price: Rs 159
Target price: Rs 205
The NTPC stock has underperformed the broader market since the last one year on sector- and company-specific issues. It now trades at a price/book value of 1.6 times and an EV/Ebitda of nine times (based on FY13 estimates) - which is closer to historical lows. Analysts expect NTPC to outperform on account of improved competitive position in the power sector, given its stronger balance sheet vis-à-vis peers, higher generation, as SEB financial health is expected to improve for 12-18 months, and reliable coal supply vis-à-vis peers. Upgrade from hold to buy.
—Religare Institutional Research
