The company jointly promoted by NTPC, PFC, Power Grid and NHPC, is engaged in power trading business with market share of 30per cent. During Q4FY17, the company posted 7.5per cent YOY growth in its long term trades to 363.3 crore units and
1.3per cent growth in short term trades to 586.4 crore units. However, it operates in a very small margin of 4-7 paise per unit. Hence, it is mulling to increase its share of long term PPA contracts to 50per cent. As for the financials, the company posted 5per cent and 85per cent revenue and
PAT growth, respectively, during
Q4FY17. Further in FY17, it posted 10per cent and 25per cent revenue and PAT growth, respectively. Thereby, considering its shift towards long term PPAS, we recommend a Buy in the scrip for a target of ₹138 and with a stop loss of ₹112.