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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 533098 | NSE: NHPC

NHPC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:43 pm

Market Cap 79,837 Cr.
Current Price 79.4
High / Low118/53.6
Stock P/E26.8
Book Value 40.0
Dividend Yield2.39 %
ROCE7.67 %
ROE9.61 %
Face Value 10.0
PEG Ratio5.14

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for NHPC Ltd

Competitors of NHPC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IND Renewable Energy Ltd 16.6 Cr. 11.926.8/11.2552 18.70.00 %0.07 %0.34 % 10.0
GMR Power & Urban Infra Ltd 7,043 Cr. 98.5169/38.6 11.10.00 %11.4 %% 5.00
Gita Renewable Energy Ltd 63.3 Cr. 154310/107243 32.20.00 %2.71 %1.91 % 10.0
SJVN Ltd 40,796 Cr. 103170/80.244.1 37.21.74 %4.99 %5.90 % 10.0
Rattanindia Power Ltd 6,691 Cr. 12.521.1/7.90 8.300.00 %8.39 %% 10.0
Industry Average66,482.63 Cr256.5185.8297.230.79%8.58%10.68%8.22

All Competitor Stocks of NHPC Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,3601,6092,4172,9412,1571,6742,7853,3662,5832,0292,7572,9312,056
Expenses1,3121,0419701,0542,2371,1541,3081,1781,3831,1411,2531,1741,335
Operating Profit1,0475681,4471,887-805201,4772,1881,2008881,5051,757721
OPM %44%35%60%64%-4%31%53%65%46%44%55%60%35%
Other Income251850220265218462255383111399292261587
Interest14213713413413013413710712011110910597
Depreciation353245295296303296303301306304294295296
Profit before tax8041,0361,2381,721-2955531,2912,1628858721,3941,618914
Tax %-20%53%21%19%402%7%18%22%12%18%21%-5%31%
Net Profit9624829831,3878895161,0541,6867767191,0951,693628
EPS in Rs0.870.440.901.330.810.471.031.530.670.641.031.540.49

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,1776,3817,3898,2218,3548,6237,7558,98310,0089,6489,14410,6079,773
Expenses2,1922,2293,0473,0873,5713,7393,5084,0024,5624,3715,1314,4014,902
Operating Profit4,9854,1524,3425,1344,7834,8844,2484,9815,4465,2774,0136,2064,871
OPM %69%65%59%62%57%57%55%55%54%55%44%59%50%
Other Income1,0861,5958891,5971,1742,2451,1851,7333111,0879817431,539
Interest5696111,2031,2961,1601,133924896877577586523422
Depreciation1,1511,2411,4991,7151,4321,4621,4691,6581,6141,2921,1901,2151,189
Profit before tax4,3513,8952,5293,7183,3654,5353,0404,1593,2664,4953,2175,2114,799
Tax %22%26%35%25%30%23%8%32%-2%20%-17%19%
Net Profit3,4042,8731,6332,7982,3653,4802,7852,8363,3453,6003,7744,2354,136
EPS in Rs2.512.131.102.251.852.952.452.582.873.263.513.873.70
Dividend Payout %28%28%27%27%81%61%57%56%52%49%52%48%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-15.60%-43.16%71.34%-15.48%47.15%-19.97%1.83%17.95%7.62%4.83%12.22%
Change in YoY Net Profit Growth (%)0.00%-27.56%114.50%-86.82%62.62%-67.12%21.80%16.12%-10.32%-2.79%7.38%

NHPC Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:1%
3 Years:0%
TTM:-6%
Compounded Profit Growth
10 Years:10%
5 Years:9%
3 Years:2%
TTM:-24%
Stock Price CAGR
10 Years:15%
5 Years:28%
3 Years:36%
1 Year:46%
Return on Equity
10 Years:9%
5 Years:10%
3 Years:10%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:58 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12,30111,07111,07111,07110,25910,25910,04510,04510,04510,04510,04510,04510,045
Reserves17,49417,17519,68720,57218,75619,78220,75321,33623,00824,87626,91628,65730,104
Borrowings20,34020,81920,58419,93819,22718,60219,06623,22623,36526,09629,54032,56134,210
Other Liabilities12,22612,36210,09411,24211,94614,29016,87016,66916,71716,27119,71022,03423,322
Total Liabilities62,36161,42761,43662,82360,18762,93366,73471,27773,13677,28886,21193,29797,681
Fixed Assets23,53729,58727,91622,61022,22721,20124,97724,40221,99321,82522,13721,47421,286
CWIP19,96214,92416,37816,74217,58819,08715,03717,18019,16722,52231,35739,83144,386
Investments1,4471,2731,0206061,0201,1251,2831,3981,8422,386499479499
Other Assets17,41515,64316,12322,86619,35221,52025,43728,29730,13330,55432,21831,51331,511
Total Assets62,36161,42761,43662,82360,18762,93366,73471,27773,13677,28886,21193,29797,681

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2,8463,8244,0615,9718,3294,6963,8242,9935,0704,5904,7056,938
Cash from Investing Activity +-1,330-1,122-768-746-1,864-886-1,182-2,987-1,607-3,084-4,191-5,968
Cash from Financing Activity +-1,344-4,536-2,494-4,000-7,812-3,863-2,63712-3,058-638-795-581
Net Cash Flow172-1,8347981,224-1,347-53517405867-281388

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow4.00-16.00-16.00-15.00-15.00-15.00-14.00-15.00-18.00-18.00-22.00-23.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days128120129837863115131194207212167
Inventory Days
Days Payable
Cash Conversion Cycle128120129837863115131194207212167
Working Capital Days-36-12-1109-17-107-2841161259929
ROCE %8%8%9%8%11%8%10%9%9%6%8%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.95%70.95%70.95%70.95%70.95%70.95%70.95%70.95%70.95%67.40%67.40%67.40%
FIIs5.59%5.70%6.61%6.52%6.82%7.37%7.57%7.59%7.38%6.80%8.96%9.38%
DIIs15.52%15.26%14.56%14.68%14.43%14.20%14.23%12.93%13.42%11.31%10.27%9.76%
Government0.00%0.00%0.00%0.00%1.73%1.71%1.53%1.53%1.53%1.28%1.28%1.13%
Public7.94%8.09%7.88%7.83%6.06%5.77%5.71%7.00%6.73%13.22%12.08%12.31%
No. of Shareholders7,84,9968,26,3578,24,3108,37,9708,34,7608,35,5048,37,8229,57,44510,32,82433,35,56636,28,67339,06,734

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India CPSE ETF172,261,4714.661566.7215,023,8852024-11-201046.58%
HDFC Balanced Advantage Fund - Regular Plan81,944,8350.97745.2915,023,8852024-11-20445.43%
ICICI Prudential Bharat 22 ETF30,836,4891.78280.5815,023,8852024-11-20105.25%
Franklin India Prima Fund28,000,0002.53254.6615,023,8852024-11-2086.37%
ICICI Prudential Large & Mid Cap Fund24,000,0002.01218.2815,023,8852024-11-2059.75%
Mirae Asset Large & Midcap Fund23,792,8570.65216.415,023,8852024-11-2058.37%
SBI Contra Fund23,535,3070.91214.0515,023,8852024-11-2056.65%
UTI Mid Cap Fund16,387,7711.48149.0515,023,8852024-11-209.08%
Invesco India Contra Fund15,274,7141.04138.9215,023,8852024-11-201.67%
HDFC Large and Mid Cap Fund - Regular Plan15,023,8850.85136.6415,023,8852024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)3.613.874.713.242.87
Diluted EPS (Rs.)3.613.873.513.242.87
Cash EPS (Rs.)5.185.434.944.864.93
Book Value[Excl.RevalReserv]/Share (Rs.)43.7041.5337.6135.7634.00
Book Value[Incl.RevalReserv]/Share (Rs.)43.7041.5337.6135.7634.00
Revenue From Operations / Share (Rs.)9.5910.569.159.609.96
PBDIT / Share (Rs.)6.206.916.126.386.23
PBIT / Share (Rs.)5.025.714.945.084.63
PBT / Share (Rs.)5.025.193.204.473.25
Net Profit / Share (Rs.)4.004.223.763.573.33
NP After MI And SOA / Share (Rs.)3.613.873.513.242.87
PBDIT Margin (%)64.6765.4766.9466.3862.57
PBIT Margin (%)52.3854.0253.9952.9246.45
PBT Margin (%)52.3149.1735.0246.5232.59
Net Profit Margin (%)41.7739.9741.0937.1833.39
NP After MI And SOA Margin (%)37.6236.6738.3433.7528.82
Return on Networth / Equity (%)9.3610.5410.099.849.19
Return on Capital Employeed (%)6.127.477.227.717.23
Return On Assets (%)3.884.514.554.454.04
Long Term Debt / Equity (X)0.750.720.660.640.66
Total Debt / Equity (X)0.830.790.740.660.68
Asset Turnover Ratio (%)0.100.120.110.120.13
Current Ratio (X)1.641.851.872.402.37
Quick Ratio (X)1.621.831.852.382.35
Dividend Payout Ratio (NP) (%)51.2749.0647.3248.4267.20
Dividend Payout Ratio (CP) (%)38.6437.3835.3734.6243.09
Earning Retention Ratio (%)48.7350.9452.6851.5832.80
Cash Earning Retention Ratio (%)61.3662.6264.6365.3856.91
Interest Coverage Ratio (X)15.4814.6511.569.857.87
Interest Coverage Ratio (Post Tax) (X)10.0210.0310.376.475.94
Enterprise Value (Cr.)124093.8671990.3654905.0747100.9842726.43
EV / Net Operating Revenue (X)12.886.795.984.884.27
EV / EBITDA (X)19.9210.368.937.356.82
MarketCap / Net Operating Revenue (X)9.353.813.042.552.00
Retention Ratios (%)48.7250.9352.6751.5732.79
Price / BV (X)2.331.090.790.740.63
Price / Net Operating Revenue (X)9.353.813.042.552.00
EarningsYield0.040.090.120.130.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of NHPC Ltd as of November 21, 2024 is: 105.48

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, NHPC Ltd is Undervalued by 32.85% compared to the current share price 79.40

Intrinsic Value of NHPC Ltd as of November 21, 2024 is: 110.98

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, NHPC Ltd is Undervalued by 39.77% compared to the current share price 79.40

Last 5 Year EPS CAGR: 5.21%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (8.15 cr) and profit (3.46 cr) over the years.
  1. The stock has a low average ROCE of 8.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 32.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 135.58, which may not be favorable.
  4. The company has higher borrowings (23,659.54) compared to reserves (22,239.69), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NHPC Ltd:
    1. Net Profit Margin: 41.77%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 6.12% (Industry Average ROCE: 8.58%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.36% (Industry Average ROE: 9.29%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 10.02
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.62
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26.8 (Industry average Stock P/E: 67.17)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.83
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

NHPC Ltd. is a Public Limited Listed company incorporated on 07/11/1975 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L40101HR1975GOI032564 and registration number is 032564. Currently Company is involved in the business activities of Electric power generation by hydroelectric power plants. Company’s Total Operating Revenue is Rs. 8353.80 Cr. and Equity Capital is Rs. 10045.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Generation/DistributionNHPC Office Complex, Sector-33, Faridabad Haryana 121003companysecretary@nhpc.nic.in
https://www.nhpcindia.com
Management
NamePosition Held
Mr. Rajendra Prasad GoyalChairman & Managing Director
Mr. Sanjay Kumar SinghDirector - Projects
Mr. Raj Kumar ChaudharyDirector - Technical
Mr. Uttam LalDirector - Personnel
Mr. Uday Sakharam NirgudkarIndependent Director
Prof. (Dr) Amit KansalIndependent Director
Prof. (Dr) Rashmi Sharma RawalIndependent Director
Mr. Jiji JosephIndependent Director
Mr. Premkumar GoverthananIndependent Director
Mr. Mohammad AfzalGovernment Nominee Director

FAQ

What is the latest intrinsic value of NHPC Ltd?

The latest intrinsic value of NHPC Ltd as on 21 November 2024 is ₹105.48, which is 32.85% higher than the current market price of ₹79.40.

What is the Market Cap of NHPC Ltd?

The Market Cap of NHPC Ltd is 79,837 Cr..

What is the current Stock Price of NHPC Ltd as on 21 November 2024?

The current stock price of NHPC Ltd as on 21 November 2024 is ₹79.4.

What is the High / Low of NHPC Ltd stocks in FY 2024?

In FY 2024, the High / Low of NHPC Ltd stocks is 118/53.6.

What is the Stock P/E of NHPC Ltd?

The Stock P/E of NHPC Ltd is 26.8.

What is the Book Value of NHPC Ltd?

The Book Value of NHPC Ltd is 40.0.

What is the Dividend Yield of NHPC Ltd?

The Dividend Yield of NHPC Ltd is 2.39 %.

What is the ROCE of NHPC Ltd?

The ROCE of NHPC Ltd is 7.67 %.

What is the ROE of NHPC Ltd?

The ROE of NHPC Ltd is 9.61 %.

What is the Face Value of NHPC Ltd?

The Face Value of NHPC Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NHPC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE