Operating Margin

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Price: 344.15 INR 2.12% Market Closed

Market Cap: ₹3.3T

19%

Declining

by 0.4%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

19%

Operating Income

₹354.7B

Revenue

₹1.9T

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

19%

Operating Income

₹354.7B

Revenue

₹1.9T

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN		NTPC Ltd NSE:NTPC	3.3T INR	Loading...
US		Vistra Corp NYSE:VST	54.6B USD	Loading...
SA		ACWA Power Co SAU:2082	184.5B SAR	Loading...
IN		Adani Power Ltd NSE:ADANIPOWER	2.6T INR	Loading...
CN		CGN Power Co Ltd SZSE:003816	193.9B CNY	Loading...
CN		China National Nuclear Power Co Ltd SSE:601985	180B CNY	Loading...
TH	G	Gulf Energy Development PCL SET:GULF	702.2B THB	Loading...
DE		Uniper SE XETRA:UN0	15.6B EUR	Loading...
US		Talen Energy Corp NASDAQ:TLN	16.4B USD	Loading...
CN		SDIC Power Holdings Co Ltd SSE:600886	105.4B CNY	Loading...
CN		Huaneng Power International Inc SSE:600011	102.7B CNY	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

NTPC Ltd
Glance View

Economic Moat

None

Market Cap

3.3T INR

Industry

Utilities

NTPC Ltd., often regarded as the powerhouse of India's energy sector, is a leading player in the realm of power generation. Originating its journey with a humble beginning in the late 1970s, NTPC was set up as a public sector enterprise by the Indian government with a vision to address the energy demands of a growing economy. Over the years, NTPC has evolved into the largest energy conglomerate in India, adeptly balancing the blend of traditional fossil fuels and renewable energy sources. The company strategically harnesses coal, gas, hydro, and renewables, thereby ensuring a diversified energy mix that aims to deliver consistent and reliable electricity. By being at the forefront of the technological advancements and innovations in power generation, NTPC maintains its edge in energy efficiency and sustainable development. In its operational model, NTPC generates revenue primarily from selling electricity to state utilities and other bulk consumers. With its comprehensive network of power plants strategically distributed across various locations, it capitalizes on economies of scale, lower production costs, and efficient resource management. The company enters into long-term Power Purchase Agreements (PPAs) with state-owned distribution companies, securing a stable income stream and minimizing market volatility. Advancing with its commitment to sustainability, NTPC is actively increasing its footprint in the renewable energy segment, underscoring its strategic move to adapt to the global shift towards cleaner energy. This dual-focus on maintaining substantial coal-based power while scaling up renewable initiatives positions NTPC at a vital junction of meeting India's energy needs while addressing environmental concerns.

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NTPC Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

NTPC Ltd
NSE:NTPC

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Market Distribution

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NTPC Ltd
Glance View

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NTPC Ltd NSE:NTPC