NTPC
NTPC
NTPC (NTPC) Stock Analysis & Case Study
Is NTPC a good buy? The data-driven verdict.
NTPC (NTPC) trades at ₹367,on the numbers it worth a closer look, a Downstox Snapshot Score of 69/100.
On the numbers, NTPC (NTPC) worth a closer look, a Downstox Snapshot Score of 69/100, weighing inexpensive at 13.2× earnings, ROE of 14.0%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027–2031.
Last updated . Data snapshot for research, not investment advice.
The Downstox take on NTPC
NTPC reads as a regulated, asset-heavy utility, and the gap between a 14% ROE and an 8.33% ROCE is the tell: a chunk of that equity return is borrowed, not operational. The 13.2 P/E and 2.27% yield say the market is paying for steady regulated returns and dividends, not growth. The Piotroski 4/9 is the wrinkle worth sitting with, since it hints fundamental momentum is soft beneath the stability. The question is whether heavy capex eventually lifts core returns or just expands the balance sheet.
Downstox editorial view, written by our own analysts. Information, not investment advice.
NTPC fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
Is NTPC overvalued? NTPC P/E vs its Power
NTPC's P/E of 13.2× sits below the Power peer median of 25.6×, so on earnings it screens cheaper than peers, while its 2.27% dividend yield is above the peer median of 0.62%.
The bull case for NTPC
- Trades at just 13.2× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection.
- A healthy 14.0% return on equity.
- Pays a 2.3% dividend yield, so you're partly paid to wait.
The bear case & risks
- No model or past record guarantees future returns, treat this as one input, not a decision.
NTPC Piotroski F-Score: 4/9, how financially strong is it?
The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. NTPC scores 4/9,mixed financial health.
NTPC MTF margin & leverage, Upstox, Zerodha, Groww, Dhan
Margin Trading Facility lets you buy NTPC with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 26.5% | 3.8× |
| Zerodha | 22.6% | 4.4× |
| Groww | 22.6% | 4.4× |
| DhanCHEAPEST | 22.0% | 4.5× |
Compare every broker on the NTPC MTF page.
NTPC vs peers,Power comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| NTPC (this stock) | 13.2× | 2.27% | ₹3.56L Cr |
| POWERGRID | 16.9× | 3.11% | ₹2.69L Cr |
| TATAPOWER | 33.8× | 0.62% | ₹1.30L Cr |
| NHPC | 20.9× | 2.44% | ₹78,614 Cr |
| ADANIGREEN | 140.0× | 0.00% | ₹2.55L Cr |
| ADANIPOWER | 35.3× | 0.00% | ₹4.51L Cr |
| SUZLON | 25.6× | 0.00% | ₹80,826 Cr |
About NTPC: sector, index & market-cap context
NTPC (NTPC) is a large-cap NSE-listed company in the Power sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹3.56L Cr. See more Nifty 50 stocks.
How the NTPC Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of NTPC's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.
This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.
NTPC analysis, FAQs
Is NTPC (NTPC) a good buy?
On the numbers, NTPC (NTPC) worth a closer look, a Downstox Snapshot Score of 69/100, weighing inexpensive at 13.2× earnings, ROE of 14.0%. This is a data snapshot for research, not investment advice.
Is NTPC overvalued or undervalued?
NTPC trades at 13.2× earnings versus a peer median of 25.6×, so it screens cheaper than its Power peers.
What is the bull case for NTPC?
Trades at just 13.2× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection. A healthy 14.0% return on equity. Pays a 2.3% dividend yield, so you're partly paid to wait.
What are the risks in NTPC?
No model or past record guarantees future returns, treat this as one input, not a decision.