NTPC - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.1

🔌 Fundamental Analysis: NTPC Ltd.

NTPC is India’s largest power generation company and a cornerstone PSU in the energy sector. It offers a balanced mix of value, stability, and dividend income, making it a solid long-term hold for conservative investors. However, growth is moderate, and high leverage is a structural feature of its capital-intensive business.

Metric Value Implication

Stock P/E 13.8 Undervalued vs. industry PE of 41.2 — attractive entry point

PEG Ratio 1.10 Fairly priced — growth matches valuation

ROE / ROCE 13.6% / 10.8% Decent — consistent but not exceptional

Dividend Yield 2.32% Attractive — steady income for long-term holders

Debt-to-Equity 1.36 High — typical for utilities, but manageable

EPS ₹24.2 Strong — supports valuation and dividend payouts

Profit Growth (QoQ) +23.4% Solid — consistent performance

📉 Technical & Trend Analysis

Current Price: ₹335

DMA 50 / DMA 200: ₹339 / ₹344 — trading below both, short-term weakness

RSI: 42.8 — approaching oversold zone

MACD: -0.30 — bearish crossover

Volume: Slightly above average — neutral sentiment

✅ Is It a Good Long-Term Investment?

Yes — suitable for long-term conservative investors. NTPC offers stability, dividends, and modest growth. It’s not a high-growth compounder, but its valuation and earnings consistency make it a reliable anchor in a diversified portfolio.

🎯 Ideal Entry Price Zone

Buy Zone: ₹315–₹330

Near technical support and below DMA levels

Accumulate gradually if PEG stays near 1 and ROE remains above 13%

Avoid chasing above ₹360 unless sector momentum improves

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years — for dividend compounding and gradual appreciation

Exit Strategy

Partial Exit near ₹440–₹450 if P/E exceeds 20 and PEG rises above 1.5

Hold if dividend yield remains >2% and PAT growth sustains

Reassess if debt levels rise further or ROCE drops below 10%

Would you like a dividend-focused comparison with other PSUs like Power Grid, Coal India, or REC Ltd. to build a stable income-generating portfolio?

Edit in a page