NTPC, India’s largest power company is emerging as an integrated power major, with a significant presence in the entire value chain of power generation business. It ranked 341st in the 2010 Forbes Global 2000 ranking of the world’s biggest companies. With a current generating capacity of 35,354 MW, NTPC accounts for 19 per cent of installed power generation capacity in the country and 29 per cent of the total power generated in the country. The company has a powerful future ahead. Just consider:
The company has, during 2010-11 signed PPA with beneficiary utilities for an aggregate capacity of 49000 MW. Adding this to the existing capacity and the PPAs already signed, the total capacity for which sale of power is ensured works out to about 100000 MW. Under these PPAs, it gets assured regulated return and can fully pass on the fuel costs.
In addition, there is ample scope for brown field capacity addition in the existing stations. Moreover there is also nuclear and renewable capacity planned by the company. Considering all these, the company targets 128000 MW capacity by end of 15th plan i.e.2031-32.
Currently the company has 14088 MW capacity under construction and 18471 MW capacity is under bidding. Feasibility reports have been approved for a capacity of 14666 MW. It is preparing feasibility reports for an additional basket of 16272 MW capacity.
Coal India always supplies well over 90% of its contracted quantity. The company is the only one that has long-term fuel supply agreement with CIL spanning 20 years. To meet the gap in its fuel requirements, the company has also tied up with STC for 12 million tonnes of imported coal apart from supplies from CIL and SCCL.
Moreover, the company has taken initiatives to import 4 MMT of coal on its own and bid opening is scheduled in the near feature. NTPC is also exploring coal acquisition opportunities in Indonesia, Mozambique, Australia and South Africa.
With 100000 MW of cost plus PPAs, better coal availability (captive blocks plus coal supply preference), first charge on collections, tripartite agreement with SEBs, strong balance sheet (cash and cash equivalents of Rs. 26000 crore), NTPC is likely to emerge as the biggest winner in a scenario of uncertainties and consolidation in the power sector.
In 2011-12, we expect NTPC to register an EPS of Rs. 12.1. The share trades at Rs. 160. P/E works out 13.2.
Keep visiting us for best stock market analysis coupled with trading tips which make money every day in share market of India.
You
should Trade Less But Trade Accurately & this is Achieved with our Tip.
