Motilal Oswal Financial Services has recommended 'Buy' on NTPC with target price of Rs 141.

"The Ministry of Power (MoP) has issued a notification on Late Payment Surcharge (LPS). As per the new rules, LPS would be based on one-year SBI MCLR v/s a fixed rate of 18% p.a. specified in the tariff regulations issued by CERC. In the current scenario, this would imply a LPS of 12-15% p.a. Over the past one-year, NTPC's receivables have increased significantly due to impact on DISCOMs' revenues on account of the COVID-19 outbreak. Power demand continues to recover, which should improve DISCOMs' revenues. Funds from the Atmanirbhar scheme is flowing through, with NTPC receiving Rs 80 billion from the scheme. We recommend buying NTPC with target price of Rs 141."

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