ICICI Securities: NTPC - Green, Sustainable, ESG Compliant Growth, Focus On Maximising Stakeholder Value
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
In his recent interactions with investors, NTPC ltd.’s Chairman and Managing Director Mr Gurdeep Singh has elaborately laid down the roadmap for the company in the next decade.
Key thrust areas include:
1. Transition towards an integrated energy company with target capacity of 130 gigawatt by FY32,
2. no addition of new greenfield thermal plants,
3. steady transition towards higher clean generation portfolio with increased focus on renewables,
4. improvement in environmental, social and governance score to maximise stakeholder value,
5. fuel security assured for long term and 6) maximising shareholder returns through best possible means.
We expect company’s core earnings to remain strong and further strengthened by the robust commissioning pipeline and several green initiatives.
We incorporate Central Electricity Regulatory Commission (CERC) norm on return on equity for flue gas desulphurization (FGD) capex in our estimates, which although we believe is positive compared with draft norms, but is lower than our estimate of 15.5%, leading us to cut our FY22E earning per share estimates by 2.2%
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.