NHPC Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
NHPC Ltd is strategically positioned for growth, driven by a robust pipeline of hydro and solar projects, with management emphasizing accelerated project execution and diversification into renewable energy. The anticipated commissioning of key projects like Subansiri Lower and Pakal Dul is expected to significantly enhance operational capacity, aligning with the growing demand for clean energy solutions. However, execution risks and regulatory challenges, particularly regarding necessary clearances, could impact timelines and costs. Vista's financial outlook reflects an expectation of accelerating revenue growth and improving margins, supported by the company's aggressive capacity expansion plans and favorable government policies. The renewable utilities sector is experiencing a positive trajectory, with a forecast CAGR of over 10.74%, further bolstering NHPC's growth prospects. Over the next 12-24 months, key opportunities include the successful execution of large-scale projects and the expansion into battery energy storage systems, while watchpoints include regulatory hurdles and potential cost overruns. Overall, NHPC's strategic initiatives and project pipeline suggest a positive outlook, albeit with execution and regulatory risks that need to be managed effectively
Why We Like This Stock
- Strong project pipeline with significant capacity expansion in hydro and solar energy
- Management's focus on operational efficiency and diversification into battery energy storage systems
- Favorable government policies supporting the renewable energy sector enhance growth prospects
Things To Watch Out For
- Execution risks related to obtaining necessary regulatory clearances for large-scale projects
- Potential cost overruns and delays due to geographical complexities and local law issues
- Dependence on hydroelectric generation exposes the company to risks from climate change and water availability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,631 | 10,380 | 11,615 | 12,699 | 14,092 |
| Profit Before Tax (Cr.) | 5,030 | 4,788 | 3,894 | 4,091 | 4,599 |
| PBT Margin | 52.2% | 46.1% | 33.5% | 32.2% | 32.6% |
| Net Profit (Cr.) | 3,970 | 3,837 | 3,055 | 3,195 | 3,056 |
| Earnings Per Share | 3.5 | 3.4 | 2.6 | 2.7 | 3.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BNP Paribas | ▼ Underperform | 75 | 03-Sep-2026 |
| Elara Capital | ▲ Buy | 97 | 05-Aug-2026 |
| CLSA | ▲ Buy | 117 | 01-Jul-2026 |
Company Overview
Show Company Profile
NHPC Limited, together with its subsidiaries, engages in the generation, sale, and trading of electricity through hydro, wind, and solar power stations in India and Nepal. It also owns and operates power stations. In addition, the company offers consultancy, project execution, and maintenance services in the areas of design and engineering; geotechnical investigations; renovation and modernization of hydropower projects; procurement; project management and supervision; construction management; and operation and maintenance of power plants, rural road projects, and rural electrification projects. The company supplies electricity to various distribution companies, including state electricity distribution companies, state power departments, and private distribution companies. It exports its products and services. NHPC Limited was incorporated in 1975 and is based in Faridabad, India.