NHPC Ltd - a Buy for 102

$NHPC NHPC, a Mini Ratna category I public sector utility, is primarily involved in the generation and sale of bulk power to various Power Utilities. Its other business includes providing project management / construction contracts/ consultancy assignment services and trading of power. The company has a presence across 15 states and 2 Union Territories in India and its total installed capacity now stands at 8,140.04 MW (including 1,681.7 MW through joint ventures), comprising 7,771.20 MW from 23 hydropower stations and 368.84 MW from six solar and one wind power project. Ÿ• NHPC's actual consolidated capex for FY2024-25 was Rs.11,596 crore. This was incurred against a target capex of Rs.11,762 crore for FY2025 on a consolidated basis. The consolidated target capex for FY2025-26 is Rs.13,052 crore . Ÿ• In April, the company commissioned the 800 MW Parbati-11 HE Project (hydroelectric) and 107.14 MW (out of a total of 300 MW) Karnisar Solar Power Plant. NHPC, under the Ministry of Power, is the largest hydropower development organisation in India, with capabilities to undertake all the activities from conceptualisation to commissioning of hydro projects. Ÿ• The company has successfully completed the erection of 767 ferrules for all eight lanes of pressure shaft liners at the 2000MW Subansiri Lower Hydroelectric Project on the Assam-Arunachal Pradesh border. Ÿ• Additionally, NHPC has a construction portfolio of 9,896.86 MW including eight hydroelectric projects of 8,514 MW (including five projects of 3,134 MW under joint ventures) and seven solar projects totaling 1,382.86 MW. Ÿ• During Q4FY25, the company has reported a 52 per cent growth in its consolidated net profit to Rs 919.63 crore in the March quarter on the back of higher income. it is expected that the stock may see a price target of Rs.102 in 8 to 10 months’ time frame on a target P/BV of 2.20x and FY26 BVPS of Rs. 46.39.