EUR 120.00 For Business Accounts Only

MOSL: Morning India (11/November/19): 1. NTPC (Late payment surcharge boosts profitability); 2. Nestle India; 3. BPCL; 4. M&M; 5. GAIL (India); 6. Eicher Motors; 7. GSK Consumer; 8. Bank of Baroda; 9. United Br

MOrning India (11/November/19): 1. NTPC (Late payment surcharge boosts profitability); 2. Nestle India; 3. BPCL; 4. M&M; 5. GAIL (India); 6. Eicher Motors; 7. GSK Consumer; 8. Bank of Baroda; 9. United Breweries

 

Today’s top research idea

NTPC: Late payment surcharge boosts profitability

• NTPC reported a strong 2Q with standalone adj. PAT up ~24% YoY to INR34.8b on the back of higher late payment surcharge income.
• Management is keen to reduce the co.'s over-dues. Potential ramp up of fuel supply at its pithead plants would help recover FC u/r. Moreover, NTPC's ~5GW capitalization for FY20 also appears on track.
• We expect capitalization to pick up pace and drive regulated equity CAGR of 16% over FY19-22E.
• Capitalization should outpace capex and boost RoE. Our DCF-based TP is INR163/sh.

Piping hot news

Income Tax task force report suggests complete rejig of tax slabs

The government could boost its revenues by more than Rs 55,000 crore if it implements a task force report that calls for a complete rejig of income tax slabs and capital gains tax regime, two persons familiar with the content of the report said. “There could be an overall gain in revenues if the recommendations are implemented in full,” one of the persons said.