Shares of NHPC rose 5.7% to ₹85.91 during early trading on March 28, 2025, after CLSA reaffirmed its ‘high-conviction outperform’ rating on the stock. The Hong Kong-based brokerage has maintained a target price of ₹117 per share, implying a 44% upside from current levels.
The bullish sentiment stems from NHPC’s progress on the long-delayed Parbati-II hydroelectric project in Himachal Pradesh. The project, which began 25 years ago but was initially scheduled for completion in seven, is nearing commissioning. Currently, 50% of the plant’s capacity has been tested at 110% load for 12 hours, and the remaining capacity is expected to be ready by the end of March.
Once operational, the Parbati-II project will enhance NHPC’s generation capacity by 11.5% and boost regulated equity by FY26. CLSA believes this commissioning will act as a significant catalyst for the stock.
The brokerage had upgraded NHPC to a ‘high-conviction outperform’ in February 2025 due to cheap valuations and expected growth triggers. It further noted that the stock’s 25% correction over the past six months offers an attractive entry point. Over the next four years, CLSA expects NHPC’s share price to potentially double, supported by the ramp-up in hydro capacity and new initiatives in pumped storage systems.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
