Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 6.71%, higher than industry average of 4.31%.

Growth Trajectory

Profitability

In the growth phase company makes 20.67% profit on every dollar of sales, higher than industry average of 14.97%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.82% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
4.43T INR
Equity Value
2.19T INR
FCF Yield
83.83%
Average ROIC
8.57%
Cost of Capital
7.57%
P/E Ratio
10.50x
Financial MetricMost Recent 12 months (INR)Previous Year (INR)
Revenues1.87T INR1.79T INR
Operating Income or EBIT398.82B INR394B INR
Interest Expense135B INR120.48B INR
Book Value Of Equity1.84T INR1.61T INR
Book Value Of Debt2.50T INR2.37T INR
Cash and Marketable Securities302.06B INR40.65B INR
Number of Shares Outstanding9.70B--
Minority interests44.13B INR0 INR
Current Stock Price324.20 INR--
Effective Tax Rate25.00%--
Marginal Tax Rate30.00%--

Performance vs Industry

Revenue Growth
+0.26%
4.56%Company
vs
4.31%Industry
At Industry Level
Operating Margin
+6.39%
21.36%Company
vs
14.97%Industry
Above Industry
NTPC Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.65%
Cost of Capital
8.88%
Return on Capital
8.87%
Reinvestment Rate
52.36%
Terminal value represents 62% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 2.75T INR Add
Present Value (Cash Flow Over Next 10 Years) 1.67T INR Add
Value of Operating Assets 4.43T INR Sub-total
Debt 2.50T INR Subtract
Minority Interests 44.13B INR Subtract
Cash 302.05B INR Add
Value of Equity 2.19T INR Sub-total
Number of Shares 9.70B shares Divisor
Estimated Value per Share (Fair Value) 226.06 INR Total
Current Market Price 324.20 INR Reference

Financial Projections

Total FCF Present Value
1.67T INR
Avg Revenue Growth
5.51%
Avg Operating Margin
20.51%
Avg ROIC
8.57%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue2.00T INR2.13T INR2.28T INR2.43T INR2.59T INR2.76T INR2.92T INR3.08T INR3.23T INR3.39T INR3.54T INR
Growth Rate 7.34% 6.70% 6.70% 6.70% 6.70% 6.29% 5.88% 5.47% 5.06% 4.65% 4.65%
PROFITABILITY
Operating Income428.09B INR446.93B INR471.63B INR497.64B INR525.02B INR558.07B INR590.90B INR623.24B INR654.78B INR685.23B INR717.09B INR
Operating Margin 21.36% 20.90% 20.67% 20.44% 20.20% 20.20% 20.20% 20.20% 20.20% 20.20% 20.20%
EBIT (1-tax)321.07B INR335.20B INR353.72B INR373.23B INR393.76B INR412.97B INR431.36B INR448.73B INR464.89B INR479.66B INR501.96B INR
CASH FLOW
Reinvestment93.27B INR99.52B INR106.20B INR113.32B INR113.50B INR225.54B INR222.12B INR216.67B INR209.14B INR218.87B INR262.85B INR
Free Cash Flow227.80B INR235.67B INR247.52B INR259.91B INR280.25B INR187.43B INR209.23B INR232.05B INR255.75B INR260.79B INR239.11B INR
Terminal Value--------------------5.65T INR
Present Value213.24B INR206.52B INR203.05B INR199.59B INR201.46B INR125.64B INR130.30B INR133.73B INR135.88B INR127.25B INR—
EFFICIENCY
ROIC 7.94% 8.11% 8.35% 8.60% 8.84% 9.04% 9.00% 8.95% 8.88% 8.81% 8.87%
Cost of Capital 6.82% 6.82% 6.82% 6.82% 6.82% 7.23% 7.64% 8.05% 8.46% 8.87% 8.88%
Sales/Capital 1.44x 1.44x 1.44x 1.44x 1.44x 0.72x 0.72x 0.72x 0.72x 0.72x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)
Reinvestment (₹B)