Post on 07-Apr-2018
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FINANCIAL MANAGEMENT PROJECT ON NTPC
Beta Calculation for NTPC
Presented By:
Sk. Shoaib Amed
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NTPC- Today
The largest power generation company in India,
with comprehensive in-house capabilities in
building and operating power projects.
Current operating capacity 31,134 MW(including
JV). 15 coal based and 7 gas based power plants.
In addition under JVs, 3 stations are coal based &
another station uses naptha/LNG as fuel by 2017.
coal based capacity will be around 53000 MW,
10000 MW through gas, 9000 MW through Hydrogeneration, about 2000 MW from nuclear sources
and around 1000 MW from Renewable Energy
Sources (RES).
Business
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NTPC- Today
SIZE
One of the largest Indian companies with a market cap of more than us$ 50 billion
Has a net worth of around us$ 13 billion
Has total assets of around us$ 20 billion
STRUCTURE
The largest generator in India with 18.79% of installed capacity & 28.60% powergeneration of the country.
NTPC coal based unit plf for 06-07 was 89.43 against all India plf of 76.8.availability factor for NTPC was 90.1%
317th largest company in the world: 6th largest utility in Asia (Forbes ranking 2009)
Platts has ranked NTPC as no. 1 independent power producer company in Asia,2009.
OWNERSHIP Government has 89.5% stake.
10.5% with public.
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Board of Directors
Shri R.S. Sharma, Chairman andManaging Director, NTPC Limited
Shri Chandan Roy,Director (Operations)Shri R.K. Jain ,
Director (Technical)
Shri A.K.Singhal,Director(Finance)Shri R.C. Shrivastav,
Director (Human Resources)
Sh. I.J.Kapoor,
Director(Commercial)
Sri B.P. Singh (55 yrs),Director(Projects)
Shri P.K. Sengupta,B. Com and FICWA
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Board of Directors
Shri M.N. Buchis M.A. (History)
Shri ShantiNarain
Shri K.DharmarajanDr. M. GovindaRao
Shri Adesh
JainShri Santosh Nautiyal
Shri KanwalNath Shri Arun Kumar Sanwalka
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Operation of NTPC
NTPC generates power from Coal and Gas.With an installed capacity of 31,134 MW,NTPC is the largest power generatingmajor in the country. It has also diversifiedinto hydro power, coal mining, powerequipment manufacturing, oil & gasexploration, power trading & distribution.
With an increasing presence in the powervalue chain, NTPC is well on its way tobecoming an Integrated Power Major.
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Index Price and stock Price
0
1000
2000
3000
4000
5000
6000
Price
Index Price and Stock Price
NIFTY or Index Price
NTPC stock Price
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Promoters shareholding percentage
89.5
10.5
Percentage of Share Holding Pattern
Promoter
Others
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Percentage of Others Shareholders
3.4
2.38
1.21
0.050.03
1.98
Percentage of Others
Banks Fin. Inst. andInsurance
FII's
Private Corporate Bodies
NRI's/OCB's/ForeignOthers
Others
General public
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Year to Year Growth
5,253.404,958.00
6,615.80
7,366.707,190.30
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
2004.5 2005 2005.5 2006 2006.5 2007 2007.5 2008 2008.5 2009 2009.5
Net Profit Rs.(in Crores)
Net Profit Rs.(in Crores)
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Year to Year Growth
-5.623025089
33.43686971
11.35010127
-2.394559301
-10
-5
0
5
10
15
20
25
30
35
40
2004.5 2005 2005.5 2006 2006.5 2007 2007.5 2008 2008.5 2009 2009.5
Year on year Growth(%) Growth
Year on year Growth(%) Growth
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Year to Year Growth
240
280
320
350360
0
50
100
150
200
250
300
350
400
2004.5 2005 2005.5 2006 2006.5 2007 2007.5 2008 2008.5 2009 2009.5
Dividend(%)
Dividend(%)
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Beta() Value Calculation
=
=
=
==
=
=
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Conclusion
The stocks one year Beta value is 0.571891. Thismeans NTPCs stock is relatively less volatilewith respect to S&P CNX NIFTY index. Theanalysis shows that NTPC is an excellentinvestment for long term (10+ years) dividendbased cash flow and capital appreciation.Looking at the long term prospects of thecompany, I individual investors can initiate astarter position at this pricing. If pricing falls into
the fair value range, the investor can add to thisstarter position. I will continue to add to myposition as my allocation levels allows.
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Thank You