NHPC Ltd’s fundamental analysis highlights key financial metrics: Market Cap of ₹96,623.19 crore, PE Ratio of 26.66, Debt to Equity of 74.18 and Return on Equity of 8.46%. These indicators reflect the company’s financial health and market valuation.
NHPC Ltd Overview
NHPC Ltd is an Indian company primarily engaged in the generation and sale of bulk power to various power utilities. It operates in the power generation sector, focusing on hydroelectric power projects and related services.
The company is listed on both the NSE and BSE. With a market capitalisation of ₹96,623.19 crores, it’s currently 23.09% away from its 52-week high and 98.74% away from its 52-week low.
NHPC Ltd Financial Results
NHPC Ltd reported strong financial performance for FY24, reflecting stability in operations. Sales reached ₹9,632 crores and Net Profit stood at ₹4,028 crores. The company maintained a steady balance sheet, with significant reserves and increased assets.
- Revenue Trend: NHPC’s sales decreased from ₹10,607 crores in FY23 to ₹9,632 crores in FY24.
- Equity and Liabilities: The company’s equity capital remained steady at ₹10,045 crores, with total liabilities increasing to ₹93,295 crores from ₹86,087 crores in FY23.
- Profitability: Operating profit stood at ₹4,868 crores, with an OPM of 44.28% compared to 55.54% in FY23.
- Earnings per Share (EPS): The EPS remained consistent at ₹4 for both FY24 and FY23.
- Return on Net Worth (RoNW): The RoNW is steady due to robust profit margins and increased profitability.
- Financial Position: NHPC’s total assets grew to ₹93,295 crores in FY24, from ₹86,087 crores in FY23, indicating solid asset management and growth.
NHPC Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 9,632 | 10,607 | 9,189 |
| Expenses | 4,764 | 4,339 | 4,001 |
| Operating Profit | 4,868 | 6,268 | 5,187 |
| OPM % | 44.28 | 55.54 | 51.09 |
| Other Income | 1,757 | 637 | -246.03 |
| EBITDA | 6,230 | 6,946 | 6,151 |
| Interest | 402 | 474 | 532 |
| Depreciation | 1,184 | 1,215 | 1,190 |
| Profit Before Tax | 5,039 | 5,216 | 3,219 |
| Tax % | 20.15 | 18.72 | -17.3 |
| Net Profit | 4,028 | 4,235 | 3,774 |
| EPS | 4 | 4 | 4 |
| Dividend Payout % | 52.63 | 47.8 | 51.57 |
* Consolidated Figures in Rs. Crores
NHPC Limited Company Metrics
NHPC Ltd’s company metrics include a market capitalization of ₹96,623.19 crore, a book value per share of ₹38.5 and a face value of ₹10. With a debt-to-equity ratio of 74.18, a return on equity of 8.46% and a 1.98% dividend yield, these figures underscore the company’s financial position and investment profile.
Market Capitalization: Market Capitalization represents the total market value of NHPC’s outstanding shares, amounting to ₹96,623.19 crore.
Book Value: The book value per share of NHPC is ₹38.5, indicating the value of the company’s net assets divided by its outstanding shares.
Face Value: The face value of NHPC’s shares is ₹10, which is the original cost of the shares as stated on the certificate.
Asset Turnover Ratio: The asset turnover ratio of 0.13 measures how efficiently NHPC uses its assets to generate revenue.
Total Debt: The total debt of ₹32,560.8 crore represents the sum of all short-term and long-term debt obligations of NHPC.
Return on Equity (ROE): The ROE of 8.46% measures NHPC’s profitability in generating income from its equity investments.
EBITDA (Q): The quarterly EBITDA of ₹1,893.81 crore represents NHPC’s earnings before interest, taxes, depreciation and amortization.
Dividend Yield: The dividend yield of 1.98% shows the annual dividend payment as a percentage of NHPC’s current share price, indicating the return on investment from dividends alone.
NHPC Ltd Stock Performance
NHPC Ltd has shown a strong return on investment (ROI) over the years, reflecting its consistent performance. The 1-year ROI stands at 74.2%, while the 3-year ROI is 50.5% and the 5-year ROI is 32.5%, indicating significant long-term growth potential.
| Period | Return on Investment (%) |
| 1 Year | 74.2 |
| 3 Years | 50.5 |
| 5 Years | 32.5 |
If you had invested ₹1,000 in NHPC Ltd:
1 year ago, your investment would now be worth ₹1,742.
3 years ago, your investment would have grown to ₹1,505.
5 years ago, your investment would have increased to ₹1,325.
NHPC Peer Comparison
NHPC Ltd, with a CMP of ₹94.65 and a market cap of ₹95,076 crores, has a P/E ratio of 26.29 and ROE of 9.61%. Its 1-year return is 81.84%, surpassing Tata Power’s 72.75% and Adani Power’s 73.26%, yet trailing Adani Green’s 96.7%.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| NTPC | 423.95 | 411090.16 | 19.2 | 13.62 | 22.08 | 78.17 | 10.47 | 1.83 |
| Adani Green | 2003.95 | 317432.19 | 235.72 | 17.07 | 7.73 | 96.7 | 9.81 | 0 |
| Power Grid Corpn | 340.85 | 317011.08 | 20.19 | 19 | 16.88 | 71.15 | 13.21 | 3.3 |
| Adani Power | 665.15 | 256544.29 | 16.05 | 57.06 | 41.44 | 73.26 | 32.25 | 0 |
| Tata Power Co. | 444.15 | 141921.01 | 38.65 | 11.28 | 11.56 | 72.75 | 11.13 | 0.45 |
| JSW Energy | 782.35 | 136736.66 | 70.17 | 8.4 | 11.7 | 85.35 | 8.59 | 0.26 |
| Adani Energy Sol | 1007.15 | 120987.18 | 111.51 | 8.59 | 1.24 | 20.03 | 9 | 0 |
| NHPC Ltd | 94.65 | 95076.25 | 26.29 | 9.61 | 3.6 | 81.84 | 7.67 | 2.01 |
NHPC Shareholding Pattern
NHPC Ltd’s shareholding pattern shows stable promoter control at 67.40% from June to March 2024, down from 70.95% in December 2023. Foreign Institutional Investors (FIIs) increased their stake to 8.96%, while Domestic Institutional Investors (DIIs) decreased to 10.27%. Retail investors hold 13.36%.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 67.40 | 67.40 | 70.95 |
| FII | 8.96 | 6.80 | 7.38 |
| DII | 10.27 | 11.31 | 13.42 |
| Retail & others | 13.36 | 14.50 | 8.26 |
NHPC Ltd History
NHPC Limited is a prominent Indian company primarily focused on the generation and sale of bulk power to various utilities. The company’s core business revolves around hydroelectric power generation, with additional activities including project management, construction contracts, consultancy services and power trading.
NHPC is actively engaged in the construction of eight hydropower projects with a combined capacity of approximately 6,434 megawatts (MW). The company operates numerous power stations across India, including notable facilities such as Salal, Dulhasti, Kishanganga and Loktak, showcasing its extensive presence in the hydropower sector.
In addition to power generation, NHPC offers comprehensive consultancy services covering various aspects of hydropower projects. These services include survey and investigation, planning, design and engineering, construction, operation and maintenance and modernization of existing facilities. The company has also expanded its operations through subsidiaries like Loktak Downstream Hydroelectric Corporation Limited and Bundelkhand Saur Urja Limited.
How To Invest In NHPC Share?
To invest in NHPC shares, open a demat account with Alice Blue. Research the company’s fundamentals, financial performance and position in the power generation sector. Analyze historical stock data and compare it with industry peers.
Determine your investment strategy based on your financial goals and risk tolerance. Consider factors such as government policies on renewable energy, hydropower demand and the company’s project pipeline. Decide on the investment amount and timing.
Place your order through the broker’s platform. Regularly monitor your investment, staying updated on company news, quarterly results and power sector trends. Consider seeking advice from a financial advisor for personalized guidance and to ensure your investment aligns with your overall portfolio strategy.
NHPC Fundamental Analysis FAQs
NHPC Ltd’s fundamental analysis reveals a Market Cap of ₹96,623.19 crore, PE Ratio of 26.66, Debt to Equity of 74.18 and Return on Equity of 8.46%. These metrics provide insights into the company’s financial health, profitability and market valuation.
NHPC’s market capitalization is ₹96,623.19 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current stock price by the number of outstanding shares.
NHPC Limited is an Indian state-owned hydropower generation company. It specializes in developing and operating hydroelectric power projects, offering services such as power generation, project management, construction contracts and consultancy in the hydropower sector.
NHPC is a public sector undertaking, primarily owned by the Government of India. While the government holds a majority stake, it is also a publicly listed company with ownership distributed among various institutional and individual shareholders.
The main shareholders of NHPC Ltd include the Government of India as the promoter, along with institutional investors and public shareholders. For the most current and accurate information on major shareholders, refer to the company’s latest shareholding pattern disclosure.
NHPC operates in the power generation industry, specifically focusing on hydroelectric power. The company is involved in developing, constructing and operating hydropower projects, as well as providing related consultancy and project management services in the renewable energy sector.
To invest in NHPC shares, open a demat account with Alice Blue. Research the company’s performance and power sector trends. Decide on your investment strategy. Place your order through the broker’s platform. Regularly monitor your investment, staying informed about market conditions. Consider seeking financial advice for personalized guidance.
Determining if NHPC is overvalued or undervalued requires analyzing its financials, growth prospects, industry position and peer comparison. Consider factors like PE ratio, future earnings potential and renewable energy sector trends. Consult recent analyst reports for expert opinions on the company’s valuation.
The future of NHPC looks promising due to its focus on renewable energy projects, especially hydropower. With government support for clean energy, NHPC is expanding its capacity and diversifying into solar and wind projects, positioning itself for sustained growth in India’s energy sector.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
