Miniratna Stock Okays Payment of Interim Dividend At The Rate of 14%: Buy?

The largest hydropower development company in India, NHPC Limited, is equipped to handle every step of the process, from project conception to project commissioning. NHPC has expanded its portfolio to include solar and wind energy development, among other areas. The Government of India's Mini-Ratna Category-I Enterprise is NHPC Ltd. The financial results for the quarter ending December 31, 2023, and an interim 14% dividend for FY24 have been released by the corporation.

NHPC Dividend

The Board of Directors announced "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 stock exchange filing.

NHPC Financials

The state-owned NHPC said on Monday that its consolidated net profit for the October-December quarter of 2023-24 dropped by 19% to Rs 628.44 crore. According to an exchange filing, the company claimed a net profit of Rs 775.99 crore for the October through December 2022-2023 period. Additionally, the company's overall income dropped from Rs 2,691.34 crore in Q3FY23 to Rs 2,549.69 crore in Q3FY24. From Rs 1,303.06 crore in the third quarter of the previous fiscal year to Rs 1,727.85 crore in the quarter under review, expenses climbed.

NHPC Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said NHPC is currently trading at Rs 84.9. After reaching an all-time high of Rs 115.85, profit booking from the higher side has been observed. The price is currently holding the Rs 77 level, which serves as immediate support and also holding 50 days EMA. If the price closes above the Rs 87.5 level, it suggests the possibility of further upward movement, with a potential target around Rs 96. On the downside, substantial support is identified near Rs 77.

A prudent strategy involves considering buying opportunities on market dips at levels around Rs 81.40. Immediate support is found near Rs 77, while on the flip side, Rs 87.5 act as resistance levels.

To manage risk effectively, it is advisable to set a stop-loss (SL) at Rs 77 to protect the investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, NHPC appears to present a promising buying opportunity for those targeting a Rs 96 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.