Navratna Stock To Buy Under 100: PSU Power Stock Turned Ex-Date For 5.10% Dividend; JM Sets Rs 103 TP

Navratna power generating company, NHPC Ltd turned ex-dividend on BSE and NSE during August 14th trading session. On the ex-date, the PSU giant stock tumbled by over 3%. This gives a buy-on-dips opportunity. Brokerage JM Financial has recommended buy after NHPC's Q1 results came in-line with estimates. The target price is set at Rs 100. Currently, NHPC traded below Rs 90 levels.

NHPC Share Price:

After market hours, NHPC shares dipped by 3.30% to end at Rs 82.25 apiece on BSE, with market cap of Rs 82,620.41 crore. The stock's return on equity is at 8.13% and price-to-equity ratio is at 3.13%. The earnings per share is at Rs 3.13 as of August 14, as per BSE data.

NHPC Dividend:

The company declared final dividend of 5.10% of face value of Rs.10/- per share (Re. 0.51/- per equity share) on the paid-up share capital of the Company for the FY 2024-25.

The record date and ex-date for the 5.10% dividend was August 14, 2025. This will be second dividend of FY25 and YTD. Earlier, the company delivered interim dividend of Rs 1.40 per share and its ex-date was on February 13, 2025.

Should You Buy NHPC Shares?

According to analysts at JM Financial, NHPC reported consolidated net revenue of INR 32bn (19% YoY, 8% JMFe) driven by higher generation (11% YoY). EBITDA stood at INR 18bn (12% YoY, 5% JMFe). Adjusted PAT stood at INR 10.6bn (4% YoY, 9% JMFe). The company expects to commission three units of 8x250 MW Subansiri Lower during Aug-Sep'25. The balance 5 units of Subansiri, 120MW Rangit-IV, and 624MW Kiru are expected to commission during FY26/ FY27. The installed capacity with regulated return is set to grow from INR 142 bn in FY25 to 292 bn by FY28.

On the valuation, JM's note said, " We maintain BUY on the sole large utility that boasts a 100% green energy portfolio, with a SOTP-based TP of INR 103."

About NHPC Ltd:

In August last year, NHPC was declared a 'Navratna Company, thereby giving it greater operational and financial autonomy. NHPC Limited is the largest hydropower development organization in India, with capabilities to undertake all the activities from conceptualization to commissioning of hydro projects. NHPC has also diversified in the field of Solar & Wind energy development etc.

NHPC Ltd. (Formerly known as National Hydroelectric Power Corporation Ltd.) was incorporated in 1975 under Companies Act, 1956. The company is mandated to plan, promote and organize an integrated and efficient development of power in all its aspects through Conventional and Non-Conventional Sources in India and abroad. NHPC is a listed company on NSE and BSE after successfully concluding its IPO in 2009.

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.