Buy NHPC; target of Rs 51: Emkay Global Financial

Emkay Global Financial is bullish on NHPC has recommended buy rating on the stock with a target price of Rs 51 in its research report dated November 13, 2022.

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November 14, 2022 / 21:55 IST

26 Aug, 2025 12:21

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Emkay Global Financial's research report on NHPC

NHPC (Standalone) reported PAT of Rs14.4bn – a growth of ~10% YoY, mainly on the back of MAT credit, as generation remained largely flattish. For 1HFY23, PAT is higher by 12% owing to better water availability and return of operations in the Sewa project. NHPC earned incentives during 1HFY23, to the tune of Rs4.7bn vs Rs4bn in 1HFY22. On the project execution front, two units of Subansiri expected by Mar-23 are now expected to be commissioned later, by Jun-23, due to the recent flash floods and the extended monsoons; the plant as a whole, though, is expected to be commissioned by FY24. Hence, there is marginal slippage in the timeline. On Parbati II, while the pace of tunneling was hampered, Management remains hopeful of the project commissioning by Dec-23.

Outlook

We raise our FY23/FY24E EPS by ~5% each. We roll forward our valuation to Dec-23 & SoTPbased value to Rs51 (Rs40 earlier), to factor-in full commissioning of the 2,800MW projects.

For all recommendations report, click here