Reliance Securities has maintained 'Buy' on NTPC after the company declared its second quarter results. The stock broker fixed price target at Rs 169.

Commenting on the results, Reliance Securities said, ''NTPC posted strong quarterly performance in the second quarter of the financial year 2015-16. NTPC reported revenues at Rs 179 billion, up 6.9% yoy on the back of improved electricity generation (up 8.5% yoy) and PAT was up by 24.2%. The company's EBITDA margin expands by 310bps is attributed to lower fuel costs, however other expenses, which was higher by 110bps offset part of the gain on account of lower fuel costs. The company's stock has underperformed the Nifty over the past 12-18 months on account of negative impact of new CERC regulations which is affecting core return on equity (RoE).''

Commenting on the investment rationale, the broking firm said, ''Operating parameters of NTPC's power plants are under pressure with plant load factor (PLF) dropping by 600-800bps due to lower system demand and fuel issues. However, in our view, both these have already been factored in the current valuation of 1.1xFY17E P/BV. We maintain Buy recommendation with a target price of Rs 169.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.