Rs 1.40 Dividend: Miniratna PSU Stock Hit Ex-Date, 140% Gain In Year; Buy?

On Thursday, 22nd February the shares of NHPC are likely to be in focus as the stock is going to trade ex-dividend. During Wednesday's closing session, the energy stock had a market worth of Rs 93,107.43 Cr. The largest hydropower development company in India, NHPC Limited also engages in the development of solar and wind energy, among other things. NHPC is one of Dalal Street's multibagger PSU stocks, having returned an astounding 140% in a year and 86% in six months.

NHPC Dividend

The Board of Directors considered and approved "Payment of interim dividend at the rate of 14% (Rs 1.40/- per equity share) on the face value of paid-up equity shares of Rs 10/- each for the financial year 2023-24. Pursuant to Regulation 42 of SEBI LODR, the Board has fixed 22.02.2024 as record date for the purpose of ascertaining eligibility of shareholders for payment of interim dividend. The interim dividend shall be paid/ dispatched within the period as stipulated in the Companies Act, 2013," said NHPC in a regulatory filing.

NHPC Financials

The company reported a net sales of Rs 1,697.02 crore in the December 2023 quarter down 25.31% from Rs. 2,272.20 crore in the December 2022 quarter. Its standalone net profit reached Rs. 546.13 crore in Q3FY24 down 30.13% from Rs. 781.66 crore in Q3FY23. EBITDA stood at Rs. 1,059.38 crore in the reporting quarter down 38.56% from Rs. 1,724.22 crore in the same quarter of the previous fiscal.

NHPC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said NHPC is currently trading at Rs 93.75, displaying a pattern of forming new higher highs and higher lows, accompanied by significant trading volume. This trend is indicative of potential further upward movement, with anticipated price targets of Rs 125 and Rs 154. Substantial support is observed near Rs 84 on the downside.

Moreover, NHPC is currently trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This signifies a robust bullish momentum, suggesting the likelihood of continued upward price action. The Relative Strength Index (RSI) stands at 57.3, indicating an upward trajectory and confirming an increase in buying momentum.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 84 to safeguard the investment in the event of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of Rs 90.

In summary, based on the technical analysis and prevailing market conditions, NHPC appears to offer a promising buying opportunity for those aiming for a Rs 125 and Rs 154 price objective, contingent upon the implementation of prudent risk management measures.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.