Motilal Oswal Institutional Equities has recommended 'Buy' rating on NTPC with target price of Rs 145. NTPC's 4QFY21 results highlight a steady performance given the regulated business and aided by other income. S/A adj. PAT (excl. FC u/r) was up 17% YoY to Rs 38.6 billion.

Commenting on the result review, the brokerage house said, "NTPC continues to provide a steady performance given the regulated nature of business. The company has ramped up its longer term RE capacity target to 60GW by 2032 (earlier: 32GW). While this may seem ambitious (implying 5-5.5GW p.a. of RE additions over the next 11 years), NTPC has taken steps to improve its renewables footprint. ~3GW of renewable capacities are under construction and expected to be commissioned over the next two years.

Moreover, even as the company gradually scales up on its renewables journey, we expect continued capitalization for its thermal projects to drive 12% growth in regulated equity over FY21-23E. We have a Buy rating on NTPC, with a DCF-based TP of Rs 145."

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