NTPC Limited (NTPC.NS) stock analysis

In our weekly check, NTPC Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7.

About NTPC Limited

NTPC Limited is an Utilities company (Regulated Electric) based in India, listed on NSE as NTPC.NS.

What our checks show for NTPC.NS

Red flags

• The gross margin fell by 9.4 points, to 33.8%: costs are rising faster than prices.
• Analysts expect the net margin to shrink by 3.2 points from today's 15.4%.
• Free cash flow is negative (-5.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.3 years.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 2.8 times: a weak year could make the payments hard.
• Revenue grew only 2.7% a year over the last 3 years.

Strengths

• Debt is low: 0x equity.
• The net margin rose by 2.9 points over 5 years, to 15.4%.
• Earnings per share grew 18% a year over the last 3 years.
• Net profit grew 20.4% a year over the last 3 years.
• The dividend takes 11% of profit: there is a cushion.
• The price is 10.4 times earnings (P/E), reasonable for its growth.

Similar companies

9503.T · POWERGRID.NS · 9502.T

Questions

What grade does NTPC Limited (NTPC.NS) have?

In our weekly check, NTPC Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NTPC.NS stock?

This week's biggest flags for NTPC Limited: Gross margin falling, Margins expected to shrink, Weak free cash flow. In total 9 of 25 checks show a warning or a red flag.

What does NTPC Limited do?

NTPC Limited is an Utilities company (Regulated Electric) based in India, listed on NSE as NTPC.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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