Buy NHPC, target price Rs 45: ICICI Securities

ICICI Securities has buy call on NHPC with a target price of Rs 45. The current market price of NHPC Ltd. is Rs 32.0 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 32144.11 Crore) operating in Power sector.

NHPC Ltd. key Products/Revenue Segments include Power, Other Services, Income from Finance Leases, Other Operating Revenue and Income from Project Development for the year ending 31-Mar-2020.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 3165.59 Crore, up 22.37 % from last quarter Total Income of Rs 2586.91 Crore and up 2.58 % from last year same quarter Total Income of Rs 3086.03 Crore. Company reported net profit after tax of Rs 1388.13 Crore in latest quarter.

Investment Rationale
Key highlights from NHPC’s Q2FY22 analyst call: 1) Company’s power stations have made up for the lower generation in Q1FY22; the target is to generate 26BU in FY22. 2) Under-construction projects are progressing well and commissioning timelines for both Subansiri and Parbati-II have been maintained, despite tunneling work being stopped for two months at Parbati-II. 3) Progress of approvals for several pipeline projects was encouraging during the quarter. 4) NHPC continues to participate aggressively on the renewable energy (RE) front, winning another 1GW through the CPSU scheme (however, module price increase is a concern). 5) Receivables have moderated to Rs25bn, and by FY22-end, the company expects it to be lower than at FY21-end..


Promoter/FII Holdings
Promoters held 70.95 per cent stake in the company as of 30-Sep-2021, while FIIs owned 5.06 per cent, DIIs 15.81 per cent.