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Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
Nomura Maintains Buy on NTPC
Nomura has maintained buy on NTPC for target of Rs 175. Nomura says that Government's disinvestment to be a near-term overhang. They maintain that NTPC should be able to achieve a 17% operating Return on Regulated Equity (RoRE) under the new tariff regulations. At the current market price, the stock trades at FY17F 1.2x P/B (BVPS: Rs 110) and 11.0x P/E (EPS: Rs 11.6); the implied target FY17F P/B multiple for the stock is 1.6x. See our note (Maintain Buy; raise 12-month TP to Rs 175, 6 May, 2015) for our detailed investment thesis on the stock.