Why is NHPC Ltd falling/rising?
As of 28-Aug, NHPC Ltd's stock price is Rs 78.36, down 1.95%, with a significant decline of 4.26% over the past week and 6.37% over the month. The company faces challenges with high debt levels and poor growth metrics, leading to negative investor sentiment and underperformance compared to the market.
As of 28-Aug, NHPC Ltd's stock price is currently at Rs 78.36, reflecting a decrease of Rs 1.56 or 1.95%. The stock has underperformed its sector by 0.69% today, having touched an intraday low of Rs 78.2. Over the past week, NHPC Ltd has seen a decline of 4.26%, and its performance over the last month shows a drop of 6.37%. The company has a high Debt to EBITDA ratio of 5.02 times, indicating a low ability to service debt, and its long-term growth has been poor, with net sales and operating profit growing at rates of only 1.38% and 2.31% respectively over the last five years. Despite high institutional holdings, which have increased by 0.53%, the stock's profitability remains low, as evidenced by an average Return on Equity of 9.57%.In the broader market context, NHPC Ltd's performance has been notably worse than the benchmark, with a one-year return of -17.56% compared to the BSE500's -5.01%. This significant underperformance suggests that investor sentiment towards NHPC Ltd is negative, particularly in light of its flat results in June and a high Debt-Equity ratio of 1.00 times. The stock is trading at a discount compared to its peers' average historical valuations, which may indicate a lack of confidence in its future growth prospects. Overall, the combination of poor financial metrics and underperformance relative to the market contributes to the stock's decline.
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