Table of Contents
Constrained demand growth ........................................................... 3
Developers rushing to cash-in on power opportunity ................... 9
But we are not as optimistic .......................................................... 12
NTPC and Tata Power emerge as clear winners in India ............. 21
Is the upside in the price?............................................................... 24
NTPC Limited................................................................................... 28
Investment thesis ...................................................................................................................30
NTPC’s growth plans ..............................................................................................................31
Not many businesses can replicate this model.......................................................................34
A low-risk business model ......................................................................................................37
Assumptions and forecasts ....................................................................................................41
Valuation ................................................................................................................................44
Sensitivity and risk analysis.....................................................................................................48
Company background .............................................................................................................50
Tata Power ....................................................................................... 52
Investment thesis ...................................................................................................................54
Well laid-out growth strategy..................................................................................................55
Assumptions and forecasts ....................................................................................................57
Valuation ................................................................................................................................60
Sensitivity and risk analysis.....................................................................................................61
Company background .............................................................................................................64
Appendix A: Regulatory environment ........................................... 67
Appendix B: Business models in generation................................. 70
Appendix C: Tariff norms ................................................................ 74
Appendix D: Operational projects – NTPC .................................... 75
Appendix E: Financials .................................................................... 76