Industry Profile: Power is one critical component for the development of the economy. Lack of availability of power is not sustainable for growth and development. India is one of the countries having a diverse source of natural resources like Water, Coal, Lignite, Natural Gas, Oil, Nuclear power, and the wind, which also helps the development of the power sector. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. To meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. India ranked third among 40 countries in EY’s Renewable Energy Country Attractiveness Index, on the back of a strong focus by the Government on promoting renewable energy and implementation of projects in a time-bound manner and moved up 73 spots to rank 26th in the World Bank’s list of electricity accessibility in 2017.
The power sector in India is undergoing a significant change that has redefined the industry outlook. Sustained economic growth continues to drive electricity demand in India. In addition, the Government of India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. At the same time, the competitive intensity is increasing on both the market and supply sides (fuel, logistics, finances, and workforce).
The total installed capacity of power stations in India stood at 330,260.53 Megawatt (MW) as of May 2017. The Ministry of Power has set a target of 1,229.4 billion units (BU) of electricity to be generated in the financial year 2017-18, which is 50 BU higher than the target for 2016-17. The annual growth rate in renewable energy generation has been estimated to be 27 percent and 18 percent for conventional energy.
The Government has added 10.2 GigaWatts (GW) of conventional energy generation capacity and 12.5 GW of renewable energy capacity in the Financial Year 2017. As a result, under the 12th Five Year Plan, the Government has added 93.5 GW of power generation capacity, surpassing its target of 88.5 GW during the period.
Company Profile: The Company is India’s largest energy producer, not only in thermal but also Hydro, nuclear, solar, wind, etc. The Company has 17.73% of the total national capacity. It contributes 24% of the entire power generation. The Company’s total installed capacity is 51,635 MW (including JVs) with 20 coal-based, seven gas-based stations, one hydro-based, and 1 Wind-based station. 9 Joint Venture stations are coal-based, and 11 Solar PV projects. The Company has approximately nine joint venture stations, which are coal-based. The Company’s Other business includes consultancy, project management and supervision, re-gasification, oil and gas exploration, and coal mining.
Shareholding Pattern: BSE Shareholding Fillings
Financials and Ratios : [table id=72 /]
Future Prospects: As a Public sector company, NTPC was going through many different issues. State electricity distribution board, Power theft, Distribution network, dues from State board, uncertainty about future demand, stagnant capacity, commercialization of new units. Addition of new capacity. But it Looks like the Company is trying to solve all these issues. That is why the stock price shows signs of a big move after a long consolidation. Defiantly a Good company to buy.
