NHPC: PSU Stock Below Rs 100 To Announce Interim Dividend In February, Record Date Fixed - A Preview

PSU Hydropower, NHPC is coming with an interim dividend for investors for the current financial year 2023-24. The company has already fixed the record date. The upcoming dividend will be announced next month along with Q3 results. NHPC is expected to see single-digit growth in Q3 PAT due to assured return and incentive income led by sustained plant availability.

NHPC Q3 Results Preview:

In its regulatory filing, NHPC said, "A meeting of the Board of Directors of the Company is scheduled to be held on Monday, 12th February 2024 to inter-alia consider unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter/ nine months ended on 31st December 2023."

For the third quarter of FY24, in its preview note, Elara Capital said, "Generation from NHPC's plants was subdued in Q3 led by reduced water availability. Expect revenue to decline marginally by 3% YoY to INR 25bn. NHPC earns assured returns on equity invested in its regulated business."

Also, Elara's note said, "PAT may rise 6% YoY to INR 8.2bn on assured return and incentive income led by sustained plant availability. Going further, performance may improve on capacity addition."

Further, Elara's note said, "NHPC may increase its capacity of 5,551MW by 2,800MW over the next 12-15 months. Subansiri Lower (8x250MW) project is likely to commission two units in Q4FY24E and the rest in FY25, while Parbati II (800MW) is set to be commissioned by the end of FY24. Under the CPSU scheme, NHPC is executing 1GW of the grid-connected solar power plant."

In the third quarter, NHPC is expected to report a revenue of Rs 2,495.6 crore, down by 14.9% QoQ and 3.4% YoY. While EBITDA is seen at Rs 1,321.7 crore, down by 24.8% QoQ and 22.5% YoY. Also, PAT is estimated at Rs 824.4 crore, down by 51.3% QoQ but up by 6.2% YoY.

NHPC dividend:

In the filing, NHPC also said, "The Board of Directors in the aforesaid meeting may also consider the proposal for declaration of interim dividend on equity share capital of the Company for the FY 2023-24."

However, NHPC has yet to declare its record date on the dividend payout. This will be NHPC's first dividend payout for FY24.

In FY23, the company paid dividends up to 18.50% amounting to Rs 1.85 per share. It has a dividend yield of 2.22% currently.

NHPC Share Price:

NHPC's share price stood at Rs 83.30 apiece, up by 3.72% on BSE with a market cap of Rs 83,675.14 crore on January 25. On the same day, the stock also touched a new 52-week high of Rs 85 per share.

As per the Trendlyne data, the consensus recommendation from 6 analysts for NHPC is BUY. Some of the key positive fundamentals for the stock price are:

- Stock Price rose 90.62% and outperformed its sector by 22.55% in the past year.

- Debt to Equity Ratio of 0 is less than 1 and healthy. This implies that its assets are financed mainly through equity.

- Mutual Fund Holding increased by 0.75% in the last quarter to 8.17.

- Interest Coverage Ratio is 14.65, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).

- Price to Earning Ratio is 21.47, lower than its sector PE ratio of 60.66.

- Return on Equity(ROE) for the last financial year was 10.54%, in the normal range of 10% to 20%.

- Promoter Share Holding stayed the same in the most recent quarter at 70.95%.

- Promoter Pledges are zero.

Disclamer: The write-up just highlights the stocks and its latest developments, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.