power
NTPC Limited
NTPC · Nifty 50
₹355.55
Price 2026-06-17
At a Glance
Fundamental
90/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
NTPC Limited scores 90/100 on fundamentals (strong). NTPC Limited: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 90/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 14.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 14.57% is moderate margin-driven and stable. Net margin of 15.4% × asset turnover of 0.34x × leverage of 2.7x.
What This Means
Net margin of 15.4% means the company keeps ₹15.4 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.34x means the company generates ₹0.34 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
47.9%
Operating
22.8%
Net
15.4%
Gross margin 47.9% → operating margin 22.8% → net margin 15.4%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
STRONGCash flow covers net income 1.7x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
ADEQUATEInterest covered 3.1x — adequate buffer. Debt is manageable. Debt/EBITDA at 4.3x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin at 3.6% — moderate. Generating cash after investments.
Peer Comparison
NTPC Limited is compared against 8 peers in the power sector.
Key Watchpoints
Breaks above ₹373 (+5%)
Trend reversal confirmation
Breaks below ₹338 (-5%)
Further downside risk
PE reverts to 5Y median of 11.6
Valuation normalization
Power sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Governance structure concerns. Independent director representation may be weak.
Mean recommendation: 1.4/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.
⚠️ 1 critical + 1 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes