37437925 Finance Project on Ntpc

8/3/2019 37437925 Finance Project on Ntpc

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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

37437925 Finance Project on Ntpc

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