NHPC Ltd (NHPC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Torrent Power

Adani Energy Sol

NLC India

Power Grid Corpn

CESC

JSW Energy

NTPC Green Ene.

Tata Power Co.

NHPC Ltd

SJVN

Adani Green

Why is NHPC Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.14 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 5.14 times
The company has been able to generate a Return on Equity (avg) of 9.11% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -3.03% of over the last 5 years

The company declared negative results in Dec'25 after flat results in Sep'25

INTEREST(Latest six months) At Rs 587.94 cr has Grown at 136.40%
ROCE(HY) Lowest at 6.50%
DEBT-EQUITY RATIO(HY) Highest at 1.09 times

With ROCE of 5.3, it has a Very Expensive valuation with a 1.5 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.29%, its profits have risen by 17.1% ; the PEG ratio of the company is 1.5

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is NHPC Ltd for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

NHPC Ltd

2.29%

0.09

26.22%

Sensex

7.07%

0.61

11.53%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.77%

EBIT Growth (5y)

-3.03%

EBIT to Interest (avg)

6.20

Debt to EBITDA (avg)

5.58

Net Debt to Equity (avg)

1.02

Sales to Capital Employed (avg)

0.15

Tax Ratio

46.64%

Dividend Payout Ratio

52.66%

Pledged Shares

Institutional Holding

21.84%

ROCE (avg)

6.64%

ROE (avg)

9.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.93

EV to EBIT

34.94

EV to EBITDA

23.72

EV to Capital Employed

1.46

EV to Sales

10.91

PEG Ratio

1.47

Dividend Yield

2.44%

ROCE (Latest)

5.35%

ROE (Latest)

7.69%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

INTEREST(Latest six months)

At Rs 587.94 cr has Grown at 136.40%

ROCE(HY)

Lowest at 6.50%

DEBT-EQUITY RATIO(HY)

Highest at 1.09 times

NET SALES(Q)

Lowest at Rs 2,220.73 cr

PBDIT(Q)

Lowest at Rs 211.60 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 9.53%

PBT LESS OI(Q)

Lowest at Rs -554.30 cr.

PAT(Q)

At Rs 219.12 cr has Fallen at -5.2%

EPS(Q)

Lowest at Rs 0.22

Loading Valuation Snapshot...

Here's what is not working for NHPC Ltd

Interest - Latest six months

At Rs 587.94 cr has Grown at 136.40%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -554.30 cr has Fallen at -886.91%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.09 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales - Quarterly

Lowest at Rs 2,220.73 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 211.60 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 9.53%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -554.30 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 219.12 cr has Fallen at -5.2%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.22

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)