NTPC - The Smart Investor - Business Standard

Sector Valuation Snapshot 25 November 2010MCap(Rs mn)FDEPS(Rs)FDEPS Growth(%)EBITDA Margin(%)PAT Margin(%)ROE(%)ROCE(%)Adj. Debt/EquityRatio (x)Companies CMP (Rs) Target (Rs) RecoFY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12E FY11E FY12EOIL & GASBPCL 701 910 BUY 253,274 (19.8) 38.3 (146.4) (293.7) 0.8 2.6 - 1.1 (5.8) 11.9 (0.8) 9.3 0.9 0.8 - 18.3 28.9 10.0 2.2 2.1Cairn India 318 285 SELL 603,222 25.9 34.7 378.8 33.8 75.2 73.3 52.7 56.8 14.0 16.7 16.2 19.5 (0.1) (0.1) 12.3 9.2 8.1 6.7 1.6 1.4GAIL India 485 540 BUY 615,656 27.7 36.3 11.7 31.4 21.3 26.3 12.6 15.4 19.5 22.3 22.2 23.8 0.5 0.5 17.5 13.4 10.2 7.7 3.2 2.8GSPL 112 125 HOLD 63,176 7.1 7.2 (3.8) 2.4 94.0 94.0 37.4 36.1 27.3 21.6 26.5 22.8 0.6 0.6 15.9 15.5 7.4 7.0 4.8 4.8HPCL 434 660 BUY 146,863 50.3 61.8 31.0 22.9 2.9 3.5 1.4 1.8 14.1 15.8 10.2 12.7 0.8 0.7 8.6 7.0 7.6 6.8 1.2 1.1IGL 320 330 HOLD 44,793 18.2 21.3 18.1 17.4 28.9 27.1 15.6 13.9 27.8 26.9 37.5 33.9 14.8 20.9 17.6 15.0 9.6 7.7 4.5 3.7IOC 362 550 BUY 879,283 35.3 39.8 (20.1) 12.8 4.7 5.6 3.2 3.7 15.0 15.4 13.7 15.8 0.6 0.5 10.3 9.1 9.4 8.1 1.5 1.4Oil India 1,400 1,450 SELL 336,612 120.3 119.1 10.8 (1.0) 52.8 51.3 35.8 35.5 19.7 17.2 29.8 26.1 (0.6) (0.7) 11.6 11.8 6.5 6.7 2.1 1.9ONGC 1,247 1,510 BUY 2,668,137 118.0 113.6 29.7 (3.7) 46.1 47.2 22.5 22.7 22.9 19.3 34.9 32.4 3.8 3.8 10.6 11.0 4.8 5.0 2.2 2.0Petronet LNG 116 165 BUY 86,850 7.7 9.8 42.2 27.7 9.7 9.9 4.6 5.0 21.4 23.5 19.8 20.0 0.9 0.9 15.1 11.8 8.5 7.1 3.0 2.6Reliance Industries 996 1,210 HOLD 3,259,455 65.1 74.9 33.9 15.1 16.0 19.2 8.2 10.3 14.1 14.4 14.4 15.8 0.2 0.0 15.3 13.3 9.1 8.3 2.1 1.8Aggregate 8,957,321 - - - - 13.6 15.5 7.2 8.5 13.0 11.5 7.5 6.9 2.0 1.8PHARMCEUTICALSBiocon 393 550 Buy 78,660 18.3 20.3 22.5 10.7 20.0 20.2 13.2 13.0 18.3 19.3 14.6 16.1 0.3 0.2 21.5 19.4 15.0 13.3 4.5 3.9Cadila Healthcare 780 770 Hold 159,673 30.9 38.5 20.8 24.9 20.5 21.0 14.4 15.2 36.5 33.6 22.8 24.6 0.7 0.4 25.3 20.2 19.0 15.6 9.8 7.5Cipla 341 370 Hold 273,555 13.2 15.6 1.0 18.1 23.8 24.2 16.9 17.4 20.5 16.7 19.1 16.7 0.0 0.0 25.8 21.8 18.8 16.2 4.6 4.0Dishman Pharmaceuticals 142 192 Hold 11,475 10.6 15.2 (6.4) 43.7 21.2 24.3 9.0 11.3 12.3 10.5 8.7 8.3 1.0 1.0 13.4 9.4 9.3 7.0 1.5 1.3Dr Reddy's Labs 1,781 1,870 Buy 301,286 66.6 102.9 0.5 54.4 18.2 24.2 15.3 19.4 23.3 20.6 17.1 16.6 0.3 0.2 26.7 17.3 23.2 14.4 7.0 5.7GlaxoSmithKline Pharmaceuticals 2,209 2,160 Hold 187,067 69.8 82.0 18.1 17.6 36.6 36.7 26.8 26.8 29.8 30.6 29.7 30.5 0.0 0.0 31.7 26.9 21.2 18.0 10.5 9.0Glenmark Pharmaceuticals 352 390 Buy 94,972 18.0 23.4 37.2 30.1 27.6 27.7 16.2 17.6 16.7 17.7 12.9 14.2 0.7 0.5 19.6 15.0 13.4 11.1 4.0 3.3Jubilant Organosys 303 330 Hold 48,150 21.5 26.9 7.9 25.1 17.3 18.3 9.2 10.2 11.2 10.9 8.8 9.0 0.7 0.6 14.1 11.3 11.5 9.5 2.1 1.9Lupin 487 510 Buy 217,001 19.6 23.0 28.4 17.4 20.1 19.8 15.5 15.3 39.4 36.3 24.6 26.2 0.6 0.3 24.9 21.2 20.1 17.1 10.7 7.9Piramal Healthcare 456 480 Sell 95,216 28.5 34.5 25.4 21.0 21.7 21.9 14.4 15.4 31.4 29.7 23.3 25.1 0.4 0.2 16.0 13.2 12.0 10.5 4.5 3.5Sun Pharmaceutical Industries 2,273 2,210 Hold 468,256 97.7 109.2 41.1 11.8 37.3 35.0 34.3 31.8 19.7 24.1 19.2 22.9 0.0 0.1 23.3 20.8 20.6 18.2 6.2 5.1Aggregate 1,935,312 - - - - 23.7 24.7 17.6 18.4 23.5 19.1 18.2 14.9 6.0 4.9POWERAdani Power 139 130 Sell 302,153 6.6 19.6 744.2 196.3 63.9 67.9 56.5 51.6 21.9 47.7 10.0 20.7 1.0 1.7 21.0 7.1 20.8 6.0 4.1 2.8Lanco Infratech 65 85 Buy 156,387 3.6 2.8 94.4 (24.3) 26.4 25.9 6.2 3.6 23.6 14.8 (72.2) (156.9) 4.4 4.2 17.8 23.6 8.7 6.7 3.8 3.2NTPC 178 200 Sell 1,468,930 12.4 13.4 17.3 7.9 35.1 35.0 20.9 20.0 15.7 15.5 22.4 15.5 0.5 0.5 14.3 13.3 9.9 8.8 2.2 2.0Reliance Power 168 140 Sell 471,394 5.1 4.6 78.5 (8.8) 57.2 52.1 55.4 41.3 7.7 5.9 4.9 3.2 1.3 2.0 33.0 36.2 34.0 30.6 2.4 2.2Tata Power 1,289 1,250 Hold 305,936 75.5 101.0 16.2 33.7 22.5 25.0 9.0 10.2 15.0 18.3 6.8 7.6 1.1 1.2 17.1 12.8 6.8 5.2 2.1 2.1Jindal Steel & Power 644 670 Hold 601,086 56.2 68.2 44.0 21.3 34.4 17.0 37.7 38.3 40.3 34.1 23.3 20.9 0.4 0.3 11.5 9.4 7.6 6.5 3.9 2.8Aggregate 3,305,886 - - - - 35.6 37.0 20.5 20.7 15.8 12.7 10.3 8.1 2.6 2.2P/E(x)EV/EBITDA(x)P/BV(x)23