Add NHPC, target price Rs 41: HDFC Securities

HDFC Securities has add call on NHPC with a target price of Rs 41.0. The current market price of NHPC is Rs 33.95.

NHPC, incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 35258.07 crore) operating in Power sector.

NHPC key Products/Revenue Segments include Power, Income from Finance Leases, Other Operating Revenue, Income from Project Development and Contract Revenue for the year ending 31-Mar-2021.

Financials
For the quarter ended 30-06-2022, the company has reported a Consolidated Total Income of Rs 2990.86 crore, up 47.58 % from last quarter Total Income of Rs 2026.62 crore and up 15.62 % from last year same quarter Total Income of Rs 2586.91 crore. Company has reported net profit after tax of Rs 1052.86 crore in latest quarter.

Investment Rationale
With Parbati IV and Subansiri expected to be commission partially in FY24, NHPC’s capacity is expected to reach 8521MW and regulated equity is expected to increase by 70% by FY24 to Rs 220 billion. The company has received approval for Kwar Hydroelectric project worth Rs 45 billion and it is foraying into green hydrogen technology, for which it has signed two MoUs with Leh and Kargil districts. In the renewable space, 1,115MW is under construction stage, 900MW is under tendering and 1,400MW is in the pipeline. All these developments are positive for NHPC and will help it boost growth and earnings in the long term, HDFC Securities said.