“As per media reports, government is planning to come with follow on public offer of NTPC in the first week of February 2010. We expect the issue should be fairly placed around Rs 230-240/share. We retain our sales and profit estimates for FY10, FY11 and FY12 and continue to remain positive on the stock. However, since we initiated coverage the stock has run up significantly and currently trading 3.1x its FY10 BV and 2.8x its FY11 BV. Hence, though we retain our price target at Rs 245 (based on 3xFY11E BV), we down grade our rating from Outperformer to Market performer,” says Karvy Stock Broking report.
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