CLSA has reaffirmed its high conviction outperform rating on NHPC, describing the state-run hydropower company as an underappreciated and inexpensive net zero play with the potential to double in value over the next four years. The brokerage highlighted that NHPC’s long-term green growth story is validated by FY24–29 regulatory changes, with the company’s capacity set to triple over the next decade.
It added that NHPC is gaining share in hydropower while also entering newer, faster-growing segments in the clean energy space. Large projects are moving toward fruition, providing visibility on earnings growth. CLSA also cited potential catalysts from the Indus Water Treaty, which could further expand opportunities for the company.
The brokerage believes NHPC’s valuation remains inexpensive relative to its growth potential and sector peers. It described the stock as a structural green energy story, backed by a strong balance sheet and favourable regulatory tailwinds, projecting a twofold return over the next four years.
Disclaimer: The views and recommendations made in this article are those of CLSA. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
