Reliance Money says 'Subscribe' to NHPC IPO
Reliance Money has recommended ‘Subscribe’ to the initial public offering of NHPC.
By ET Bureau |
MUMBAI: Reliance Money has recommended ���Subscribe��� to the initial public offering of NHPC.
���Majority of the NHPC���s plants are located in the water rich north and north east region which allows it to generate electricity even during the non peak period. NHPC���s average capacity index for FY07-09 was 94.11%, 96.13% and 93.61% respectively well above the benchmark required under the CERC regulation of 90% availability.
At the price band, the issue is priced at Price to Book Value of 1.9x-2.1x post-dilution which is at a sizeable discount comparing its peers. However, NHPC's reported RoNW seems lower at 6.8% (attributable to the higher capital work in progress), as the company plans further investments in creating assets. Considering the demand supply scenario, the power space stands clear for strong growth momentum going ahead.
NHPC is placed in an admirable position to capitalize the situation with its strong operational efficiency and various MoU's/JV's in place. Hence, with long term growth prospects in view, we recommend "SUBSCRIBE" to the issue of NHPC Ltd,��� the brokerage said.
���Majority of the NHPC���s plants are located in the water rich north and north east region which allows it to generate electricity even during the non peak period. NHPC���s average capacity index for FY07-09 was 94.11%, 96.13% and 93.61% respectively well above the benchmark required under the CERC regulation of 90% availability.
At the price band, the issue is priced at Price to Book Value of 1.9x-2.1x post-dilution which is at a sizeable discount comparing its peers. However, NHPC's reported RoNW seems lower at 6.8% (attributable to the higher capital work in progress), as the company plans further investments in creating assets. Considering the demand supply scenario, the power space stands clear for strong growth momentum going ahead.
NHPC is placed in an admirable position to capitalize the situation with its strong operational efficiency and various MoU's/JV's in place. Hence, with long term growth prospects in view, we recommend "SUBSCRIBE" to the issue of NHPC Ltd,��� the brokerage said.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
