Buy NHPC, target price Rs 41: HDFC Securities

HDFC Securities has buy call on NHPC with a target price of Rs 41. The current market price of NHPC Ltd. is Rs 34.15.
Time period given by analyst is one year when NHPC Ltd. price can reach defined target.

NHPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 34253.57 Crore) operating in Power sector.


NHPC Ltd. 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 31-03-2022, the company reported a Consolidated Total Income of Rs 2026.62 Crore, down -14.62 % from last quarter Total Income of Rs 2373.72 Crore and down -3.23 % from last year same quarter Total Income of Rs 2094.30 Crore. Company reported net profit after tax of Rs 515.64 Crore in latest quarter.

Investment Rationale
It is expected to report a 13.7% YoY rise in revenue, led by a 10.6% YoY rise in generation, which is driven by higher water availability and improved demand. PAT is expected to increase 11% YoY to INR10.1bn. Key aspects to watch out for: (1) progress in Parbati II and Subansiri projects; (2) outstanding dues across discoms.

Promoter/FII Holdings
Promoters held 70.95 per cent stake in the company as of 31-Mar-2022, while FIIs owned 5.7 per cent, DIIs 15.26 per cent.