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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 533098 | NSE: NHPC

Fundamental Analysis of NHPC Ltd

About the Company - NHPC Ltd

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.
Power - Generation/DistributionNHPC Office Complex, Sector-33, Faridabad Haryana
NamePosition Held
Mr. Rajeev Kumar VishnoiChairman & Managing Director
Mr. Rajendra Prasad GoyalExecutive Director
Mr. Biswajit BasuExecutive Director
Mr. Uttam LalExecutive Director
Mr. Mohammad AfzalNominee Director
Mr. Uday Sakharam NirgudkarIndependent Director
Prof. (Dr) Amit KansalIndependent Director
Prof. (Dr) Rashmi Sharma RawalIndependent Director
Mr. Jiji JosephIndependent Director
Mr. Prem Kumar GoverthananIndependent Director
Mr. Raj Kumar ChaudharyExecutive Director

NHPC Ltd. Share Price Update

Share PriceValue
Previous Day₹91.75

Basic Stock Data of NHPC Ltd

Market Cap 92,063 Cr.
Current Price 91.6
High / Low116/37.8
Stock P/E24.8
Book Value 38.9
Dividend Yield2.02 %
ROCE8.49 %
ROE10.8 %
Face Value 10.0

Data Source:

Competitors of NHPC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
SJVN Ltd 47,668 Cr. 121170/30.453.3 36.51.44 %9.27 %10.3 % 10.0
Adani Green Energy Ltd 3,07,302 Cr. 1,9401,992/439187 50.10.00 %7.81 %22.8 % 10.0
India Power Corporation Ltd 2,011 Cr. 20.628.0/9.10138 10.40.23 %3.77 %1.14 % 1.00
Adani Power Ltd 2,13,674 Cr. 554589/1329.17 1050.00 %15.8 %44.8 % 10.0
Orient Green Power Company Ltd 2,329 Cr. 23.834.6/7.0980.0 8.520.00 %7.19 %1.82 % 10.0
Industry Average114,596.80 Cr531.8893.4942.100.33%8.77%16.17%8.20

NHPC Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Operating Profit1,8351,0475681,4471,887-805201,4772,1881,2008881,5051,757
OPM %63%44%35%60%64%-4%31%53%65%46%44%55%60%
Other Income224251850220265218462255383111399292261
Profit before tax1,5648041,0361,2381,721-2955531,2912,1628858721,3941,618
Tax %17%-20%53%21%19%402%7%18%22%12%18%21%-5%
Net Profit1,3009624829831,3878895161,0541,6867767191,0951,693
EPS in Rs1.180.870.440.901.330.810.471.031.530.670.641.031.54

NHPC Ltd Quarterly Chart

NHPC Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit4,9854,1524,3425,1344,7834,8844,2484,9815,4465,2774,0136,2065,350
OPM %69%65%59%62%57%57%55%55%54%55%44%59%52%
Other Income1,0861,5958891,5971,1742,2451,1851,7333111,0879817431,063
Profit before tax4,3513,8952,5293,7183,3654,5353,0404,1593,2664,4953,2175,2114,770
Tax %22%26%35%25%30%23%8%32%-2%20%-17%19%
Net Profit3,4042,8731,6332,7982,3653,4802,7852,8363,3453,6003,7744,2354,284
EPS in Rs2.512.
Dividend Payout %28%28%27%27%81%61%57%56%52%49%52%48%

NHPC Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
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 Growth

Compounded Sales Growth
10 Years:5%
5 Years:6%
3 Years:2%
Compounded Profit Growth
10 Years:5%
5 Years:9%
3 Years:6%
Stock Price CAGR
10 Years:18%
5 Years:32%
3 Years:56%
1 Year:140%
Return on Equity
10 Years:9%
5 Years:10%
3 Years:11%
Last Year:11%

NHPC Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital12,30112,30111,07111,07111,07110,25910,25910,04510,04510,04510,04510,04510,045
Other Liabilities12,10812,22612,36210,09411,24211,94614,29016,87016,66916,71716,27119,65220,628
Total Liabilities60,31462,36161,42761,43662,82360,18762,93366,73471,27773,13677,28886,09189,802
Fixed Assets22,18323,53729,58727,91622,61022,22721,20124,97724,40221,99321,82522,13721,816
Other Assets17,07617,41515,64316,12322,86619,35221,52025,43728,29730,13330,55432,09832,104
Total Assets60,31462,36161,42761,43662,82360,18762,93366,73471,27773,13677,28886,09189,802

NHPC Ltd Reserves and Borrowings Chart

NHPC Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3,3782,8463,8244,0615,9718,3294,6963,8242,9935,0704,5904,692
Cash from Investing Activity -2,312-1,330-1,122-768-746-1,864-886-1,182-2,987-1,607-3,084-4,191
Cash from Financing Activity -22-1,344-4,536-2,494-4,000-7,812-3,863-2,63712-3,058-638-796
Net Cash Flow1,044172-1,8347981,224-1,347-53517405867-295

NHPC Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days114128120129837863115131194207212
Inventory Days
Days Payable
Cash Conversion Cycle114128120129837863115131194207212
Working Capital Days-74-36-12-1109-17-107-28411612599
ROCE %10%8%8%9%8%11%8%10%9%9%6%8%

NHPC Ltd Financial Efficiency Indicators Chart

NHPC Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
No. of Shareholders6,82,8406,97,6786,92,0307,84,9968,26,3578,24,3108,37,9708,34,7608,35,5048,37,8229,57,44510,32,824

NHPC Ltd Shareholding Pattern Chart

No. of NHPC Ltd Shareholders

NHPC Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India CPSE ETF1779725143.52968.17
HDFC Balanced Advantage Fund - Regular Plan819448350.65445.78
SBI Balanced Advantage Fund405367910.87220.52
ICICI Prudential Large & Mid Cap Fund375392902.12204.21
ICICI Prudential Multicap Fund348731381.99189.71
ICICI Prudential Bharat 22 ETF302027831.27164.24
Franklin India Prima Fund280000001.64152.32
SBI Contra Fund235353070.68128.03
ICICI Prudential Bluechip Fund201011200.25109.35
ICICI Prudential Value Discovery Fund174012890.2794.66


NHPC Ltd EPS Trend

NHPC Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Basic EPS (Rs.)3.874.713.242.872.54
Diluted EPS (Rs.)3.873.513.242.872.54
Cash EPS (Rs.)5.434.944.864.934.47
Book Value[Excl.RevalReserv]/Share (Rs.)41.5337.6135.7634.0033.52
Book Value[Incl.RevalReserv]/Share (Rs.)41.5337.6135.7634.0033.52
Revenue From Operations / Share (Rs.)10.569.159.609.968.94
PBDIT / Share (Rs.)6.916.126.386.235.84
PBIT / Share (Rs.)5.714.945.084.634.19
PBT / Share (Rs.)
Net Profit / Share (Rs.)4.223.763.573.332.82
NP After MI And SOA / Share (Rs.)3.873.513.242.872.58
PBDIT Margin (%)65.4766.9466.3862.5765.27
PBIT Margin (%)54.0253.9952.9246.4546.82
PBT Margin (%)49.1735.0246.5232.5946.24
Net Profit Margin (%)39.9741.0937.1833.3931.51
NP After MI And SOA Margin (%)36.6738.3433.7528.8228.89
Return on Networth / Equity (%)10.5410.099.849.198.42
Return on Capital Employeed (%)7.477.227.717.236.94
Return On Assets (%)4.514.554.454.043.88
Long Term Debt / Equity (X)0.720.660.640.660.55
Total Debt / Equity (X)0.790.740.660.680.56
Asset Turnover Ratio (%)
Current Ratio (X)1.851.872.402.372.41
Quick Ratio (X)1.831.852.382.352.39
Dividend Payout Ratio (NP) (%)49.0647.3248.4267.2038.54
Dividend Payout Ratio (CP) (%)37.3835.3734.6243.0923.52
Earning Retention Ratio (%)50.9452.6851.5832.8061.46
Cash Earning Retention Ratio (%)62.6264.6365.3856.9176.48
Interest Coverage Ratio (X)14.6511.569.857.876.55
Interest Coverage Ratio (Post Tax) (X)10.0310.376.475.943.22
Enterprise Value (Cr.)71990.3654905.0747100.9842726.4342945.30
EV / Net Operating Revenue (X)6.795.984.884.274.78
EV / EBITDA (X)10.368.937.356.827.32
MarketCap / Net Operating Revenue (X)3.813.042.552.002.77
Retention Ratios (%)50.9352.6751.5732.7961.45
Price / BV (X)1.090.790.740.630.80
Price / Net Operating Revenue (X)3.813.042.552.002.77

NHPC Ltd Profitability Ratios (%)

NHPC Ltd Liquidity Ratios

NHPC Ltd Liquidity Ratios (%)

NHPC Ltd Interest Coverage Ratios (X)

NHPC Ltd Valuation Ratios

Fair Value / Intrinsic Value of NHPC Ltd

Fair Value: ₹106.29

The stock is undervalued by 16.04% compared to the current price ₹91.6

*Investments are subject to market risks

Strength and Weakness of NHPC Ltd

  1. The stock has a low average Working Capital Days of 23.67, which is a positive sign.
  2. The company has shown consistent growth in sales (8.15 cr) and profit (3.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 4.91 and average Dividend Yield of 50.84%.
  2. The stock has a low average ROCE of 8.67%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 131.17, which may not be favorable.
  4. The company has higher borrowings (22,344.23) compared to reserves (21,204.31), which may suggest financial risk.

Should I Buy NHPC Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in NHPC Ltd:
    1. Net Profit Margin: 39.97%
      • 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: 7.47% (Industry Average ROCE: 8.99%)
      • 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. Interest Coverage Ratio (Post Tax): 10.03
      • 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.
    4. Quick Ratio: 1.83
      • 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.
    5. ✓ Stock P/E: 26.1 (Industry average Stock P/E: 34.06)
      • 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.
    6. ✓ Total Debt / Equity: 0.79
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar

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 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