CLSA has upgraded NHPC to ‘High Conviction Outperform’ from ‘Outperform’ while revising the target price to ₹117 from ₹120. The firm believes NHPC’s share price could double over the next four years, driven by strong regulated equity growth and an inexpensive valuation after a 25% stock correction over the past six months.
The brokerage highlights the Parbati 2 hydro project, which is expected to boost regulated equity by 27% in Q1FY25. NHPC’s entry into shorter-duration regulated pump storage is also seen as a key positive. CLSA anticipates a 2x increase in regulated equity between FY24-28, as large-scale projects reach fruition, supporting earnings growth.
With a CMP of ₹74.50, NHPC’s share price is currently trading well below its target, indicating strong upside potential as the company continues executing its expansion plans.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making investment decisions.
