NTPC is already ahead of BHEL as far as the market capitalization is concerned. NTPCs market cap is around 70100 crores, while that of BHEL is approx. 20350 crores. NTPC is thus a much more valuable company compared to BHEL.
NTPC stock price is much lower than BHEL coz the number of outstanding shares is much higher, resulting in a lower EPS and consequently a lower price.
Power sector is going to be drsatically reformed in next two to three years. National grid is coming up very fast and will be completed by 2010. Recalcitrant state electricity boards will have to go for wholesale reforms. Internally Central Govt. has started taking these states to task by way of fiscal disincentives. Already maharashtra has cut free power supply to farmers to a large extent(an election promise). this is only a beginning of the trend. the more indian economy is tuning into world economy the more changes will be required. I suppose after steel , constructions including roads power will be the next booming sector. Industries will be benefitted but domestic consumers will have to pay higher price so as to reduce subsidy. As per WTO regime various subsidies including power have to be slowly phased out.
Those are mainly assumptions but India is inexorably being drawn towards fulfilling it.Who would have imagined an economist as Prime Minister of India.
In such a scenario, NTPC will be in a very strong position. but one has to wait for 5 years to reap rich rewards.Have patience if you are an Investor. Usual Caveats apply.