CLSA has downgraded National Thermal Power Corporation (NTPC) to ‘outperform’ from ‘buy’ and cut the stock target price to Rs 195 from Rs 210,citing cuts in capacity addition and earning estimates for FY12 and FY13.
Following our recent power sector meetings in Delhi we are cutting NTPC’s capacity addition estimates for FY12-13 and lowering our earnings by 1-5 (percent).
We have also cut NTPC’s long term capacity addition from 4GW per annum to 3-3.5GW given the coal shortages and other constraints.’ said CLSA.
However,it adds that NTPC continues to be a good stock for investors looking for safe havens or those looking for low-teen returns.
Notes,NTPC remains one of the few positive recommendations in the power sector in India.
At 9:25 a.m.,shares of NTPC were at 167.75 rupees,up 0.4 percent.
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