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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

NLC India

Clean Max Enviro

CESC

Adani Energy Sol

JSW Energy

NTPC Green Ene.

Tata Power Co.

Torrent Power

SJVN

Adani Green

NHPC Ltd

Why is NHPC Ltd ?

Weak Long Term Fundamental Strength with a -4.24% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 9.99 times
The company has been able to generate a Return on Equity (avg) of 9.33% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

PBT LESS OI(Q) At Rs -19.55 cr has Fallen at -102.17%
ROCE(HY) Lowest at 4.62%
DEBT-EQUITY RATIO(HY) Highest at 1.26 times

With ROCE of 3.6, it has a Very Expensive valuation with a 1.4 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 -7.11%, its profits have risen by 25.3% ; the PEG ratio of the company is 0.8

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

-7.11%

-0.29

24.48%

Sensex

-6.17%

-0.47

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.78%

EBIT Growth (5y)

-4.24%

EBIT to Interest (avg)

5.94

Debt to EBITDA (avg)

6.11

Net Debt to Equity (avg)

1.17

Sales to Capital Employed (avg)

0.14

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

63.81%

Pledged Shares

Institutional Holding

22.25%

ROCE (avg)

6.28%

ROE (avg)

9.33%

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

1.92

EV to EBIT

39.36

EV to EBITDA

24.51

EV to Capital Employed

1.42

EV to Sales

11.05

PEG Ratio

0.84

Dividend Yield

2.45%

ROCE (Latest)

3.62%

ROE (Latest)

9.09%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

11What is working for the Company

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 3,651.04 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 4.42 times

PAT(Q)

Highest at Rs 1,460.16 cr.

EPS(Q)

Highest at Rs 1.45

-16What is not working for the Company

PBT LESS OI(Q)

At Rs -19.55 cr has Fallen at -102.17%

ROCE(HY)

Lowest at 4.62%

DEBT-EQUITY RATIO(HY)

Highest at 1.26 times

INTEREST(Q)

At Rs 574.28 cr has Grown at 85.10%

NON-OPERATING INCOME(Q)

is 106.85 % of Profit Before Tax (PBT

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Here's what is working for NHPC Ltd

Profit After Tax (PAT) - Quarterly

At Rs 1,460.16 cr has Grown at 71.1%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,460.16 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 1.45

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 3,651.04 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Highest at 4.42 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for NHPC Ltd

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -19.55 cr has Fallen at -102.17%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Quarterly

At Rs 574.28 cr has Grown at 85.10%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.26 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

Interest - Quarterly

Highest at Rs 574.28 cr

in the last five quarters and Increased by 85.10 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 106.85 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 304.99 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income