NTPC Limited
NTPC Limited Fundamental Analysis
NTPC Limited (NTPC.NS) shows moderate financial fundamentals with a PE ratio of 15.44, profit margin of 12.89%, and ROE of 13.07%. The company generates $1875.7B in annual revenue with moderate year-over-year growth of 5.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NTPC.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakNTPC.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateNTPC.NS shows balanced valuation metrics.
Growth Score
ExcellentNTPC.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakNTPC.NS carries high financial risk with limited liquidity.
Profitability Score
WeakNTPC.NS struggles to sustain strong margins.
Key Financial Metrics
Is NTPC.NS Expensive or Cheap?
P/E Ratio
NTPC.NS trades at 15.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NTPC.NS's PEG of 8.60 indicates potential overvaluation.
Price to Book
The market values NTPC Limited at 1.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.26 times EBITDA. This is generally considered low.
How Well Does NTPC.NS Make Money?
Net Profit Margin
For every $100 in sales, NTPC Limited keeps $12.89 as profit after all expenses.
Operating Margin
Core operations generate 30.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.07 in profit for every $100 of shareholder equity.
ROA
NTPC Limited generates $4.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NTPC Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
NTPC Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
NTPC.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.99
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How NTPC.NS Stacks Against Its Sector Peers
| Metric | NTPC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.44 | 19.51 | Better (Cheaper) |
| ROE | 13.07% | 940.00% | Weak |
| Net Margin | 12.89% | 9081.00% | Weak |
| Debt/Equity | 1.33 | 1.73 | Strong (Low Leverage) |
| Current Ratio | 0.87 | 1.48 | Weak Liquidity |
| ROA | 4.49% | -169.00% (disorted) | Weak |
NTPC.NS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NTPC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.41%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
106.08%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
109.39%
Industry Style: Defensive, Dividend, Income
High Growth