⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NHPC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | NHPC | Market Cap | 77,749 Cr. | Current Price | 77.3 ₹ | High / Low | 92.3 ₹ |
| Stock P/E | 24.4 | Book Value | 39.6 ₹ | Dividend Yield | 2.47 % | ROCE | 7.44 % |
| ROE | 8.40 % | Face Value | 10.0 ₹ | DMA 50 | 76.5 ₹ | DMA 200 | 80.2 ₹ |
| Chg in FII Hold | 0.34 % | Chg in DII Hold | -0.23 % | PAT Qtr | 293 Cr. | PAT Prev Qtr | 926 Cr. |
| RSI | 58.4 | MACD | -0.29 | Volume | 2,97,27,574 | Avg Vol 1Wk | 2,53,83,988 |
| Low price | 68.7 ₹ | High price | 92.3 ₹ | PEG Ratio | -3.79 | Debt to equity | 0.99 |
| 52w Index | 36.7 % | Qtr Profit Var | 7.04 % | EPS | 3.17 ₹ | Industry PE | 30.0 |
📊 Financials
- Revenue & Profitability: PAT dropped sharply from ₹926 Cr. to ₹293 Cr., showing earnings volatility. EPS at ₹3.17 is modest.
- Margins & Returns: ROCE (7.44%) and ROE (8.40%) are weak compared to peers, reflecting limited efficiency.
- Debt: Debt-to-equity ratio of 0.99 indicates moderate leverage.
- Cash Flow: Stable due to government backing, but profitability fluctuations affect consistency.
💹 Valuation
- P/E Ratio: 24.4 vs Industry PE of 30.0 → Slightly undervalued compared to peers.
- P/B Ratio: ~1.95 (Price ₹77.3 / Book Value ₹39.6) → Reasonable valuation.
- PEG Ratio: -3.79 → Negative, indicating weak growth prospects relative to valuation.
- Intrinsic Value: Current price appears fairly valued, with limited upside.
🏢 Business Model & Competitive Advantage
- NHPC operates in hydropower generation, benefiting from government support and renewable energy demand.
- Competitive advantage lies in scale, regulatory backing, and long-term contracts.
- Dividend yield of 2.47% provides attractive shareholder returns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹70–74 range (close to 52W low of ₹68.7 and below DMA levels).
- Long-Term Holding: Suitable for conservative investors seeking stable dividends. Growth prospects are limited, so accumulation should be cautious.
✅ Positive
- Dividend yield of 2.47% supports investor confidence.
- Government backing ensures operational stability.
- FII holdings increased (+0.34%), showing foreign investor interest.
⚠️ Limitation
- Weak ROCE (7.44%) and ROE (8.40%) compared to peers.
- Negative PEG ratio highlights poor growth prospects.
- High debt-to-equity ratio (0.99) adds financial risk.
📉 Company Negative News
- PAT dropped significantly compared to previous quarter.
- DII holdings reduced (-0.23%), showing cautious domestic sentiment.
- MACD at -0.29 indicates weak technical momentum.
📈 Company Positive News
- Dividend yield remains attractive at 2.47%.
- FII holdings increased, signaling global investor confidence.
- Stock trading near DMA 50 (₹76.5) shows technical support.
🏭 Industry
- Power generation industry benefits from renewable energy demand and government initiatives.
- Industry PE at 30.0 suggests peers trade at higher valuations, making NHPC slightly undervalued.
🔎 Conclusion
- NHPC offers stability with government backing and attractive dividend yield.
- However, weak return ratios, high debt, and poor growth prospects limit upside potential.
- Best strategy: Accumulate near ₹70–74 range for dividend income and long-term stability, while avoiding aggressive buying at current levels.