Buy Nhpc: Stratzy's Target Price Rs 108

On April 30, market analysis firm Stratzy issued a buy call on NHPC, a state-owned hydroelectric power company in India. Their target price for the stock was set at Rs 108, representing a potential upside of over 12% from its current market price of Rs 96.05. This move by Stratzy indicates their positive outlook on the company's prospects, suggesting that investors may consider buying NHPC shares for potential gains.

About Nhpc:

NHPC Limited (formerly National Hydroelectric Power Corporation) is a public sector undertaking of the Government of India, under the Ministry of Power. It is India's largest hydroelectric power producer, with an installed capacity of 7,071 MW. The company has 24 power stations, 12 under construction and 8 under survey or investigation. NHPC's power projects are located in 12 states of India. The company also has a joint venture with the Government of Nepal for the construction of a hydropower project in Nepal. NHPC is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

52 Week Price Trend:

NHPC's current market price (CMP) of Rs 96.05 indicates a significant discount compared to its 52-week high of Rs 115.85. The stock has lost over 17% since reaching its peak in January 2023. However, it has recovered significantly from its 52-week low of Rs 38.05, which was recorded in March 2022. Analysts attribute the current dip to market volatility and concerns over rising interest rates. Despite the short-term fluctuations, NHPC remains a fundamentally strong company with a track record of consistent dividends and growth potential.

Stratzy's MOST Analysis:

NHPC's BB rating from Stratzy's MOST framework indicates a medium fundamental risk level. This assessment is based on the following pillars: Management (scoring), Outlook (scoring), Safety (scoring), and Trend (scoring). The overall score combines these individual ratings to determine the overall risk assessment. A rating of BB suggests that NHPC faces some degree of financial or operational challenges, but these are not considered severe enough to warrant a higher risk rating.

Company's Fundamentals:

NHPC (National Hydroelectric Power Corporation), listed on the National Stock Exchange (NSE) with the symbol NHPC, exhibits key financial metrics indicating its valuation and profitability. Its Stock Price to Earnings (PE) ratio of 24.91 suggests that investors are willing to pay 24.91 times the company's annual earnings per share. The Price to Book (PB) Ratio of 2.37 implies that NHPC's market value exceeds its book value by 2.37 times. Additionally, NHPC offers a Dividend Yield of 2.01%, indicating the percentage of its share price that is paid out as dividends. These metrics provide insights into NHPC's valuation, financial health, and investor sentiment towards the company.

Fundamental and Technical information provided in this blog were last updated on 30 Apr, 2024

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