NHPC shares surged 3% after CLSA upgraded the stock to ‘High Conviction Outperform’ from ‘Outperform,’ revising the target price to ₹117 from ₹120. As of 9:37 AM, the shares were trading 3.63% higher at Rs 77.33.
The brokerage believes NHPC’s stock has the potential to double over the next four years, driven by robust regulated equity growth and an attractive valuation following a 25% correction in the past six months.
A key catalyst for NHPC’s growth is the Parbati 2 hydro project, expected to boost regulated equity by 27% in Q1FY25. Additionally, NHPC’s foray into shorter-duration regulated pump storage projects is seen as a positive development. CLSA projects a twofold increase in NHPC’s regulated equity between FY24 and FY28, as multiple large-scale projects come online, supporting sustained earnings growth.
NHPC shares opened at ₹75.50, reaching a high of ₹77.42 and a low of ₹75.00. The stock’s 52-week high stands at ₹118.40, while the 52-week low is ₹71.00.
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