NHPC

NHPC Limited, India's flagship hydro-electricity generator and a Navratna PSU, commands a mid to large-cap status with a ₹77,000 crore market cap. While it dominates hydropower and has a decent project pipeline, its current valuation, with a PE of 24, looks quite expensive compared to its 5-year median of 12. Consistent top-line growth is good, but the dip in the bottom line in 2025 is a point of concern for investors. The Government of India remains a consistent promoter, providing stability. Interestingly, FIIs are building positions, while DIIs and the public are exiting, suggesting a divergence in opinion. Despite its dominance and potential intrinsic value, the stretched valuations, capital-intensive nature, and inherent environmental risks associated with hydro projects require careful consideration for investors looking for entry points.