NHPC Ltd, a leading hydropower producer, has witnessed an extraordinary surge of 161% from its 52-week low over the past year. The multibagger stock, which touched a low of Rs 37.80 on February 27, 2023, reached a high of Rs 98.90 in the current session. Analysts are closely monitoring the stock’s bullish momentum, technical indicators, and future potential.
Stock Movement Today: NHPC’s stock surged to a high of Rs 98.90, marking a 6.40% rise from the previous close of Rs 92.95 on the Bombay Stock Exchange (BSE). The recent rally was fueled by Prime Minister Narendra Modi laying the foundation stone for a 300 MW solar power plant in Bikaner, Rajasthan. NHPC is set to undertake the project under the government’s CPSU Scheme, Phase-II, Tranche-III, with a total investment exceeding Rs 1,732 crore. The project is slated for commissioning by September 2024.
Analysts’ Take: Analysts anticipate a further rise in NHPC’s stock, with short-term targets ranging up to Rs 135. Technical Research Analyst Shiju Koothupalakkal sees support near Rs 88 and potential targets at Rs 105 and Rs 114. VP of Technical Research Kunal V Parar highlights a positive trend, projecting a target range of Rs 115-135. Analyst Abhijeet from Tips2trades identifies a bullish scenario with a target of Rs 109.
Stock Technicals: NHPC’s relative strength index (RSI) stands at 58, indicating a balanced trading zone. The stock is trading above various moving averages, reinforcing its positive trend.
Valuation: NHPC, a green energy stock, holds a PE ratio of 26.03 against an industry PE of 24.89. The price-to-book ratio stands at 2.63.
Q3 Earnings: In the December 2023 quarter, NHPC reported a 26.77% decline in consolidated net profit to Rs 491.90 crore, with revenue from operations falling by 20.42%. The company also declared an interim dividend of Rs 1.4 per share for the fiscal year 2023-24.
About the Company: NHPC Limited is a major player in the generation and sale of bulk power, engaged in various business activities such as project management, construction contracts, consultancy services, and power trading.
