On this page ▾
Today's prices ask more of NTPC than of Power Finance Corporation.
At current prices, buyers of NTPC are assuming about 12.4% return on equity against 14.1% in its own record; for Power Finance Corporation it is 9.4% against 25.5%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: NTPC on excess return; Power Finance Corporation on estimate withheld.
- Size: NTPC is worth about 2.8 times Power Finance Corporation on the stock market.
- Record: On revenue the two have grown at much the same pace: NTPC compounded at about 10% a year (FY2019–FY2026) and Power Finance Corporation at about 11% (FY2020–FY2026).
- What to watch: regulated equity growth at NTPC; loan growth at Power Finance Corporation.
| NTPC | Power Finance Corporation | |
|---|---|---|
| Price | ₹319 | ₹334 |
| Market cap | ₹3.09L Cr | ₹1.10L Cr |
| P/E | 10.4 | 4.2 |
| P/B | 1.52 | 0.83 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Estimate withheld |
01Two businesses
Coal, regulation and a renewable future
NTPC is India's largest power generator and is majority-owned by the Government of India. Most of its capacity is coal-fired, with gas, hydro and a fast-growing renewable portfolio held largely through NTPC Green Energy, which was listed separately in November 2024.
The bank of India's power sector
Power Finance Corporation (PFC) is a state-owned non-bank lender, majority-owned by the Government of India, that finances generation, transmission and distribution projects. Its borrowers are mostly state-owned utilities and large power companies.
02The records side by side
On revenue the two have grown at much the same pace: NTPC compounded at about 10% a year (FY2019–FY2026) and Power Finance Corporation at about 11% (FY2020–FY2026). By revenue, NTPC is about 1.6 times the size of Power Finance Corporation. NTPC kept 14.7% of revenue as net profit in FY2026; Power Finance Corporation kept 29.1% of revenue as net profit in FY2026 — a sign of very different business models.
Full ten-year tables and charts are on each company's page: NTPC · Power Finance Corporation.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Regulated equity growthEvery rupee of approved capex adds to the base on which NTPC earns its allowed return.
- Plant availabilityFull fixed-cost recovery depends on keeping plants available to run.
- Loan growthInvestment in power and renewables drives demand for loans.
- SpreadsLow funding costs from its state backing support margins.
05What could go wrong
- Regulatory changesA lower allowed return in a future tariff period would reduce value directly.
- Coal's long-term futureThermal plants may run less as renewables grow.
- ConcentrationHeavy exposure to one sector and to state utilities.
- State discom financesWeak distributors can delay repayment.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is NTPC or Power Finance Corporation better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, NTPC trades at 10.4 times earnings and 1.52 times book value, and Power Finance Corporation at 4.2 times earnings and 0.83 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between NTPC and Power Finance Corporation?
NTPC is India's largest power generator and is majority-owned by the Government of India. Power Finance Corporation (PFC) is a state-owned non-bank lender, majority-owned by the Government of India, that finances generation, transmission and distribution projects.
Are NTPC and Power Finance Corporation valued the same way?
No. NTPC is valued on excess return and Power Finance Corporation on estimate withheld, because forcing one model onto both would misstate at least one of them.
What does today's price assume for NTPC and Power Finance Corporation?
Worked backwards from the share price, NTPC needs about 12.4% return on equity and Power Finance Corporation about 9.4% return on equity, against 14.1% and 25.5% in their own records.