Currently there is power crisis emanating in the country and it has been reeling for quite some time. So, amid the power crunch, here is one PSU miniratna stock that has moved from hydropower to other energy sources that can come off as a good 'Buy'. The stock we are referring to is here National Hydroelectric Power Corporation Ltd.
The company is the largest organisation for hydropower development in India, with capabilities to undertake all the activities from conceptualization to commissioning in relation to setting up of hydro projects. NHPC Limited has also diversified in the field of Solar & Wind power.NHPC Limited presently has an installation base of 7071.2 MW from 24 power stations including 2 nos projects in JV mode.
NHPC stock and its stock price trajectory
The company's stock has broadly moved in a range and its lifetime low and high are Rs. 14.8 and Rs. 42, respectively. The company's 52-week high has been Rs. 37.05.
NHPC fundamentals and financials
Say for the fundamentals the company being in the power business and as with the growth of the economy, NHPC's growth also looks certain. Further the stock in comparison to its peer in the industry such as Adani Green, JaiPrakash looks decent on valuation. Also, the stock's dividend yield is good. The company last declared a dividend of Rs. 1.31, for which the stock tuned ex-dividend on February 22, 2022.
The company's financials have been steady regardless of the corona situation. In the December ended quarter, the firm posted net profit of Rs. 760.56, somewhat lower in comparison to the year ago figure of Rs. 808.12 crore.
NHPC foray into green hydrogen space
The company has only lately entered into a MoU with the administration of HP for developing green hydrogen technologies to produce hydrogen."The MoU is for development of green hydrogen technologies. As per the MoU, NHPC shall develop a pilot green hydrogen mobility project including hydrogen production. NHPC shall upscale hydrogen production on a commercial scale to supply the hydrogen needs...for sectors like mobility, transportation, heating, micro grid," NHPC said in a statement.
NHPC -A Buy By ICICI Securities
ICICI Securities has also signalled a 'Buy' on the stock for the target price of Rs. 45. The brokerage believes "nother positive outcome of the progress at Subansiri is that GoI is now working to fast-track other large hydro projects including Dibang (2,880MW), and revive Upper Subansiri (2,000MW) and Middle Subansiri (1,800MW). NHPC aims to become a 50GW company in the next 15 years, with 6GW HEPs under construction, and in-pipeline capacities of 26GW HEPs, 8GW PSPs and >12GW RE".
Here the analysis is given the low priced nature of the stock and the current power crisis that has been stretching in the country. Nevertheless, the 'Buy' on the stock should be analysed after careful due diligence.