NHPC, or National Hydropower Power Corporation Limited, is India’s premier hydropower company playing a vital role in the country’s clean energy development. Here’s a comprehensive overview:
What NHPC does:
- Hydropower Generation: NHPC owns and operates 24 hydropower projects across India, with a total installed capacity exceeding 7,000 MW. It contributes significantly to India’s energy security and clean energy goals.
- Project Development: NHPC is actively involved in developing new hydropower projects, both domestically and internationally. It currently has over 50 projects under various stages of development, with a potential to add over 14,000 MW to its capacity.
- Renewable Energy Diversification: While hydropower remains its core focus, NHPC is diversifying into other renewable energy sources like solar, wind, geothermal, and tidal power. It has commissioned several solar and wind projects already and aims to expand its presence in these sectors.
- Social Development: NHPC recognizes its responsibility towards communities impacted by its projects. It undertakes various social development initiatives in areas like education, healthcare, infrastructure development, and environmental protection.
Key Strengths of NHPC:
- Government Backing: As a public sector undertaking under the Ministry of Power, NHPC enjoys strong government support, facilitating project approvals, land acquisition, and financial resources.
- Technical Expertise: NHPC has extensive experience and expertise in hydropower development, construction, and operation.
- Diversification Strategy:Â Expanding into other renewable energy sources like solar and wind helps mitigate risk and opens up new growth opportunities.
- Financial Stability:Â NHPC has a robust financial track record with consistent profitability and dividend payouts.
NHPC Overview
| Category | Details |
|---|---|
| Company Name | National Hydropower Power Corporation Limited (NHPC) |
| Headquarters | Faridabad, Haryana, India |
| Industry | Renewable Energy (Hydropower & Others) |
| Year Founded | 1975 |
| Website | https://www.nhpcindia.com/ |
NHPC Products
| Category | Product | Description |
|---|---|---|
| Hydropower | Electricity | Clean and renewable electricity generated from 24 operational hydropower plants with a total installed capacity exceeding 7,000 MW. |
| Renewable Energy Diversification | Solar power: | NHPC has commissioned several solar power projects with a total capacity exceeding 50 MW and plans to expand its presence in this sector. |
| Wind power: | NHPC has a commissioned wind power project with a capacity of 50 MW and aims to develop more wind power projects in the future. | |
| Other renewables: | NHPC is exploring opportunities in geothermal, tidal, and other emerging renewable energy sources. | |
| Consultancy Services: | Technical expertise | NHPC offers hydro project development and construction expertise to other countries and entities. |
| Social Development Initiatives: | Infrastructure development, education, healthcare | NHPC undertakes various social development projects in communities impacted by its projects, contributing to their social and economic well-being. |
NHPC Awards and Recognition
| Year | Award/Recognition | Category | Awarded by |
|---|---|---|---|
| 2022 | Best Globally Competitive Power Company of India – Hydropower and Renewable Energy Sector | Recognition of leadership in renewable energy | PRAKASHmay 15th Enertia Awards |
| 2020 | Outstanding performing utility in hydro power sector | Performance Excellence | Central Board of Irrigation and Power (CBIP) |
| 2016 | Best Mini Ratna | Performance Excellence | Dun & Bradstreet PSU Awards |
| 2016 | Best Hydropower Enterprise Award | Industry Excellence | Hydropower Forum of India |
| 2016 | Award for excellence in cost management | Financial Management | The Institute of Cost Accountants of India |
| 2015 | Most Eco-Friendly Award and Most Valuable Company Award | Company Performance | India Today Group PSU Awards |
| 2014 | Most Valuable PSU under Mini Ratna Category | Company Performance | India Today Group PSU Awards |
| 2016 | Second Prize | Rajbhasha Implementation | Ministry of Home Affairs, Govt. of India |
NHPC Fundamentals
| Key Metric | Data |
|---|---|
| Market Capitalization (Cr) | 42,000 |
| Revenue (Cr) | 15,263 |
| EBITDA (Cr) | 5,444 |
| EPS (INR) | 4.88 |
| P/E Ratio | 33.80 |
| P/B Ratio | 1.85 |
| Dividend Yield (%) | 4.00 |
| Debt/Equity Ratio | 1.25 |
| Book Value (INR) | 26.90 |
| Face Value (INR) | 10.00 |
| ROE (%) | 18.10 |
| Debt (Cr) | 18,800 |
NHPC Revenue and Net Profit
| Year | Revenue (Cr) | Net Profit (Cr) | Year-on-Year Revenue Growth (%) | Year-on-Year Net Profit Growth (%) |
|---|---|---|---|---|
| FY2023 | 15,263 | 2,987 | 21.17 | 37.70 |
| FY2022 | 12,602 | 2,175 | 12.92 | 2.10 |
| FY2021 | 11,140 | 2,139 | 14.50 | 16.00 |
| FY2020 | 9,725 | 1,844 | 3.90 | 3.90 |
| FY2019 | 9,352 | 1,770 | 13.10 | 11.80 |
NHPC Shareholding Patterns
| Category | Shareholding | Percentage |
|---|---|---|
| Promoter & Promoter Group | Government of India | 70.95% |
| Public Shareholding | Domestic Individual Investors | 16.44% |
| Foreign Institutional Investors (FIIs) | 7.59% | |
| Domestic Institutional Investors (DIIs) | 4.26% | |
| Mutual Funds | 0.76% |
NHPC Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Share Price Target (INR) |
|---|---|
| 2025 | 200-230 |
| 235-250 | |
| 2026 | 250-280 |
| 285-310 | |
| 2027 | 310-340 |
| 345-370 | |
| 2028 | 375-400 |
| 405-430 | |
| 2029 | 435-460 |
| 465-490 |
NHPC Share Price Target for 2025
NHPC Share Price Target for 2025 is 200- 250.
NHPC Share Price Target for 2026
NHPC Share Price Target for 2026 is 250 – 310.
NHPC Share Price Target for 2027
NHPC Share Price Target for 2027 is 310 – 370.
NHPC Share Price Target for 2028
NHPC Share Price Target for 2028 is 375 – 430.
NHPC Share Price Target for 2029
NHPC Share Price Target for 2029 is 435 – 490.
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NHPC Dividend History
| Year | Dividend (%) | Interim Dividend (INR) | Final Dividend (INR) | Total Dividend (INR) |
|---|---|---|---|---|
| 2023 | 18.50 | 1.40 (Feb 22) | 0.45 (May 28, Aug 21, Aug 21) | 1.85 |
| 2022 | 14.00 | 1.31 (Feb 22) | 0.35 (Jun 10) | 1.66 |
| 2021 | 13.10 | 1.25 (Feb 11) | 0.32 (Jun 29) | 1.57 |
| 2020 | 12.50 | 1.18 (Feb 17) | 0.32 (Sep 12) | 1.50 |
| 2019 | 8.50 | 0.75 (Sep 17) | 0.25 (Mar 25) | 1.00 |
NHPC Share Split History
| Year | Bonus Ratio | Details |
|---|---|---|
| 2018 | 1:2 | One bonus share issued for every two shares held |
Future Outlook of NHPC
Positives:
- Strong government backing: As a public sector undertaking under the Ministry of Power, NHPC enjoys steady financial support, facilitating project clearances, land acquisition, and access to resources.
- Dominant hydropower player: With a robust existing network of hydropower plants and significant experience in the sector, NHPC is well-positioned to leverage its expertise and contribute to India’s clean energy goals.
- Renewable energy diversification: Expanding into solar, wind, and other renewable energy sources opens up new growth avenues, reduces dependence on hydropower, and aligns with India’s renewable energy push.
- Favourable market conditions:Â Rising energy demand and increasing focus on clean energy globally can bolster NHPC’s position and attract investor interest.
Risks Associated With Investing in NHPC
| Category | Risk | Explanation | Potential Impact |
|---|---|---|---|
| Hydropower Dependence | Over-reliance on hydropower | Fluctuations in water availability, environmental concerns, and project delays can impact power generation and profitability. | Lower revenues, missed earnings targets, reputational damage. |
| Competition | Increasing competition from private players in renewable energy | Loss of market share, bidding pressure, challenges in acquiring resources and projects. | Reduced profitability, slower growth, dividend uncertainty. |
| Project Delays | Environmental clearances, land acquisition issues, and geological complexities can hold up projects. | Delayed return on investment, increased construction costs, potential project cancellation. | Higher debt burden, lower profitability, weaker investor confidence. |
| Transmission Bottlenecks | Inadequate transmission infrastructure restricts evacuation of power from remote projects. | Limited capacity utilization, wasted generation potential, inability to access new markets. | Lower revenues, missed growth opportunities, regional power deficits. |
| Financial Risks | High debt levels and rising interest rates | Increased financial burden, reduced flexibility for investments, pressure on dividend payouts. | Credit rating downgrades, limited growth prospects, decreased shareholder value. |
| Policy Risks | Changes in government policies regarding hydropower and renewable energy can impact the sector. | Regulatory uncertainty, project suspension, loss of financial incentives. | Lower future returns, slower project development, reduced industry attractiveness. |
| Technology Risks | Advancements in renewable energy technologies may render hydropower less competitive. | Higher operational costs, outdated infrastructure, challenges in adapting to new technologies. | Market share loss, revenue decline, potential need for costly upgrades. |
NHPC Competitors
| Category | Competitor | Focus | Strengths | Weaknesses |
|---|---|---|---|---|
| Hydropower: | Teesta Urja Meghalaya Limited (TUML) | Hydropower projects in Northeast India | Strong regional presence, long-term contracts, government support | Limited geographical reach, lower capacity compared to NHPC |
| Satluj Jal Vidyut Nigam Limited (SJVNL) | Hydropower projects in Himachal Pradesh and Punjab | Established player, strong operational track record, government backing | Limited diversification, dependence on specific region | |
| NEEPCO Ltd. | Hydropower projects in Northeast India | Focus on remote areas, experience in complex terrain, government support | Smaller project size compared to NHPC, limited financial resources | |
| Renewable Energy: | Adani Green Energy Limited | Solar and wind power projects across India | Aggressive expansion, strong financial backing, diversified portfolio | Limited experience in hydropower, dependence on government policies |
| Tata Power Company Limited | Solar, wind, and hydro projects across India | Established brand, diversified portfolio, strong financial resources | Higher debt levels compared to NHPC, lower hydropower focus | |
| ReNew Power Ventures Limited | Wind and solar power projects across India | Leading wind power player, international presence, strong project execution | Limited experience in hydro, dependence on weather conditions |
NHPC Share Price FAQs
Q: Is NHPC a good investment?
A: Investing in NHPC involves risks like any other stock. Whether it’s a good investment for you depends on your individual financial goals and risk tolerance. It’s crucial to conduct thorough research, consider the company’s fundamentals, understand the associated risks, and consult with a financial advisor before making any investment decisions.
DISCLAIMER: We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
