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

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SJVN

NHPC Ltd

Why is NHPC Ltd ?

Weak Long Term Fundamental Strength with a -1.58% 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 Jun 26

INTEREST(Latest six months) At Rs 1,180.04 cr has Grown at 100.71%
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 -7.67%, its profits have risen by 24.5% ; the PEG ratio of the company is 0.8

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 4.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.67% returns

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, Low Return

Absolute

Risk Adjusted

Volatility

NHPC Ltd

-7.67%

-0.31

24.54%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.63%

EBIT Growth (5y)

-1.58%

EBIT to Interest (avg)

5.89

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

27.97%

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

1.87

EV to EBIT

34.55

EV to EBITDA

21.78

EV to Capital Employed

1.40

EV to Sales

10.32

PEG Ratio

0.83

Dividend Yield

2.52%

ROCE (Latest)

3.62%

ROE (Latest)

9.09%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

11What is working for the Company

PAT(Latest six months)

At Rs 2,556.03 cr has Grown at 33.22%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 3,651.04 cr

DEBTORS TURNOVER RATIO(HY)

Highest at 4.42 times

NET SALES(Q)

Highest at Rs 3,808.31 cr

PBDIT(Q)

Highest at Rs 2,352.19 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 61.76%

-14What is not working for the Company

INTEREST(Latest six months)

At Rs 1,180.04 cr has Grown at 100.71%

ROCE(HY)

Lowest at 4.62%

DEBT-EQUITY RATIO(HY)

Highest at 1.26 times

Loading Valuation Snapshot...

Here's what is working for NHPC Ltd

Profit After Tax (PAT) - Latest six months

At Rs 2,556.03 cr has Grown at 33.22%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 3,808.31 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 2,352.19 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 61.76%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

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

Interest - Latest six months

At Rs 1,180.04 cr has Grown at 100.71%

over previous Half yearly period

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