The Group is provided with the last 5-year financial information of NTPC Limited along with their approximately last 5 years share prices.

Click below to access the 5-year financial information of NTPC

Rf	6.65%
Working days	250
Beta	0.662664
Rm	13.74%

Company Name	YEAR	DIVIDEND RATE	FACE VALUE
NTPC Limited	2010	38.0%	Rs.10
	2011	38.0%	Rs.10
	2012	40.0%	Rs.10
	2013	57.5%	Rs.10
	2014	57.5%	Rs.10
	2015	25.0%	Rs.10
	2016	33.5%	Rs.10
	2017	47.8%	Rs.10
	2018	51.2%	Rs.10
	2019	60.8%	Rs.10
	2020	31.5%	Rs.10

a) Valuation of the Company using Dividend Discount Model (use only constant growth model) Dividend Data is given in the attached EXCEL file. While calculating the intrinsic value of NTPC share, use the formula g = Return on Equity Retention Rate to calculate the growth rate. After the calculation of growth rate then compute valuation using the Dividend Discount Model.

b) Relative Valuation of the Company uses Price/Earnings Ratio. (Calculate Price/Earnings Ratio of last 5 years, take its average for the projection of next years (FY 2021) P/E, and predict the price of the Company if it is expected that its EPS (Earning Per Share) will be Rs. 13.50. (Note: For Calculating relative valuation of the company 1. Calculate Price/Earnings Ratio for the last 5 years using annual EPS and March-end price of each FY. 2- Number of shares outstanding to be calculated by dividing share capital with the face value of the shares- share capital/ face value per share)

LEADING THE POWER SECTOR NTPC (Crore) 2015.16 2017-18 2016-17 A 83,452.70 1,755.25 85,207.95 78,273.44 1,068.86 79,342.30 70,843.81 1,165.35 72,009.16 B B 47,572.19 43,798.59 48,315.47 1,313.51 4,734.67 7,421.73 23,422.57 7,098.86 16,323.71 3,984.25 12,339.46 3,581.65 5,576.49 19,052.43 5,172.34 13,880.09 3,296,41 10,583.68 SELECTED FINANCIAL INFORMATION 2019.20 2018-19 Revenue Revenue from operations 97,700.39 90,307.43 Other income 2,778.02 1,872,13 Total revenue 1,00,478.41 92, 179.56 Expenses Fuel 54,241.82 52,493.74 Energy purchased for trading 2,776,44 2,713.68 Employee benefits expense 4,925.60 4,779.89 Other expenses 8,663.81 7,548.63 Profit before depreciation, finance cost and tax 29,870.74 24,643.62 Depreciation, amortization and impairment expense 8,629.85 7,254.36 Profit before finance cost and tax 21,247.89 17,389.26 Finance costs 6,781.97 4,716.74 Profit before exceptional items tax and regulatory deferral account balances 14,465.92 12,672.52 Exceptional Items (+) income/ (-) loss Profit before tax 14,465.92 12,672.52 Total Tax expense 9,181.95 (2,918.71) Profit for the year before regulatory deferral account balances 5,283.97 15,591.23 Net movement in regulatory deferral account balances (net of tax). 4,828.84 (3,841.34) Profit for the year 10,112.81 11,749.89 Other comprehensive income/(expense) for the year (net of income tax) (327.99) (201.87) Total comprehensive income for the year 9,785.59 11,548.02 Dividend 2,968.37 4,922.55 Dividend tax 607.80 1,000.49 Retained profit 6,536.64 5,826.85 Assets Property, plant & equipment 1,56,273.02 1,25,290.68 Capital work in progress 73,066.76 90,808.89 Intangible assets 538.28 329.94 Intangible assets under development 992.52 397.80 Total Fixed Assets (Net block) 2,30,170.58 2,16,897.31 Investments in Subsidiaries, JVs & Others (Non-current) 26,400.89 13,145.94 Other non-current financial assets 2,025.42 1,968.67 Other non-current assets 11,199.62 13,269.30 Current assets 48,895.18 42,133.74 Regulatory deferral account debit balances 9.122.76 3,406.00 Total Assets 3,27,667.45 2,90,750.96 Liabilities Borrowings Non-current borrowings 1,46,538.70 1,19,693.08 Current maturities of non-current borrowings 6.154.92 7.732.40 Total borrowings 1,52,693,62 1,27,430.48 Other Non-current liabilities 9,449.99 6,151.34 Current liabilities 54,866.85 55,354.00 Less: Current maturities of non-current borrowings 6,154.92 7.732.40 Net Current liabilities 48,711.93 47,621.60 Deferred Revenue 3,949.54 2,139.37 Regulatory deferral account credit balances Net-worth Equity 9,894.56 9,894.56 Other Equity 1,03,674.88 97,513.61 Networth 1,13,569.44 1,07,408.17 Networth excluding Fly ash utilisation reserve fund & Corporate social responsibility (CSR) reserve 1,19,980.96 1,06,771.54 Total Liabilities 3,27,667.45 2,90,750.96 12,339.46 5,257.14 7,082.32 3,260.85 10,343.17 (14.49) 10,328.69 4,040.28 816.40 5,486,49 4,324.60 5,099.38 22,353.13 5,920.82 16,43931 3,597,20 12,835.11 (782.95) 12,052.16 2,930.82 9,121.34 263.92 9,385.26 ( (203.38) 9,181.88 3,595.03 727.79 5,062.44 10,583.68 (173.83) 10,757.51 12.09 10,769.60 (58.63) 10,710.97 2,769.24 562.32 7,445.04 1,19,427.57 78,606.91 331.60 469.36 1,98,835.44 10,047.48 2,288.53 11,547.73 36,731.25 8,381.66 2,67,839.09 97,443.34 81,921.82 293.02 43463 1,80,092.81 8,248.11 2,440.36 16,852.53 28,420.85 5,450.67 2,41,505.33 91,499.36 66,205,59 273.89 217.61 1,58,196.45 8,014.32 1,534.30 17,636.80 29,756.45 SELECTED FINANCIAL INFORMATION 2,15,138.32 D 1,08,697.60 6,406,69 1,15,104.29 12,716.06 42,554.76 6,406.69 36,148.07 2,085.90 97,339.28 6.500.37 1,03,839.65 9,153.62 36,177.32 6.500.37 29,676.95 2,121.14 482.74 85,096.95 6.730.79 91,827.74 4,645.94 31,758.74 6,730.79 25,027.95 2,047.34 295.65 E 8,245.46 93,532.31 1,01,777.77 1,01, 146.56 2,67,832.09 8,245.46 87,985.77 96,231.23 95,674.55 2,41,505.33 8,245.46 83,048.24 91,293.70 90,815.49 2,15,138.32