Buy NHPC, target price Rs 100: JM Financial

JM Financial has a Buy call on NHPC with a target price of Rs 100. The current market price of NHPC Ltd. is Rs 86.6 Time period given by analyst is a year when NHPC price can reach defined target. NHPC, incorporated in 1975, is a Large Cap company with a market cap of Rs 86357.16 crore, operating in the Power sector.

NHPC's key products/revenue segments include Power, Other Operating Revenue, Lease & Other Income, Income from Finance Leases, Income from Project Development, Scrap and Contract Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2672.41 crore, up 2.12% from last quarter Total Income of Rs 2616.89 crore and up 15.18% from last year same quarter Total Income of Rs 2320.18 crore. The company has reported net profit after tax of Rs 919.52 crore in the latest quarter.

The company's top management includes Mr.Rajendra Prasad Goyal, Mr.Premkumar Goverthanan, Mr.Jiji Joseph, Prof. (Dr)Rashmi Sharma Rawal, Prof. (Dr)Amit Kansal, Mr.Uday Sakharam Nirgudkar, Mr.Uttam Lal, Mr.Raj Kumar Chaudhary, Mr.Sanjay Kumar Singh, Mr.Mohammad Afzal. Company has Chaturvedi & Co. as its auditors. As on 31-03-2025, the company has a total of 1,004 crore shares outstanding.

Investment Rationale
NHPC reported consolidated net revenue of Rs 23 billion (24% YoY, 22% JMFe,-29% Cons.). EBITDA stood at Rs 11 billion (-5% YoY, 14% JMFe, 10% Cons.). Adjusted PAT stood at Rs 8.5 billion (57% YoY, 94% JMFe, 66% Cons). Post adjusting the multiple one offs in 4QFY25 and 4QFY24, revenue/ EBITDA/ PAT for 4QFY25 stood at Rs 21 billion (-6% YoY)/ INR 9bn (-26% YoY)/ INR 4bn (0% YoY). With significant hydro capacity addition expected during FY26/FY27 (2,000MW Subansiri Lower, 120MW Rangit-IV, 624MW Kiru), the installed capacity with regulated return is set to grow from Rs 142 billon in FY25 to 292 billion by FY28. JM Financial maintains BUY on the sole large utility that boasts a 100% green energy portfolio, with a SOTP-based target price of Rs 100.

Promoter/FII Holdings
Promoters held 67.4 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.81 per cent, DIIs 10.6 per cent.