NHPC Limited, known for its strong returns, has doubled investors’ money in the short term and delivered significant multi-bagger returns. However, the stock (NSE: NHPC) has recently experienced a 32% drop from its record high over the past three months. While the stock saw substantial gains of over 144% in the past nine months, October alone witnessed a 15% decline. On October 24, the stock rose by 2.51%, closing at ₹80.14, but it fell 1.76% to ₹78.64 on October 25.
Nomura Brokerage Firm’s Insights
Nomura sees this drop as a buying opportunity. NHPC operates a cost-plus Return on Equity (ROE) model and benefits from government support, giving it strong growth potential. As the only PSU in India focusing entirely on hydropower, NHPC boasts a 7 GW hydropower capacity, covering approximately 15% of India’s total.
Nomura expects NHPC’s EBITDA margin to increase by 4.71% to reach 55.8%, thanks to expanded capital expenditure and profit margins, setting up a positive revenue growth outlook. Nomura has assigned a “BUY” rating to NHPC with a target price of ₹176.
Stock Performance Summary
- Current 52-Week Low: ₹48.48 (as of October 26, 2023)
- 52-Week High: ₹118.45 (reached on July 15, 2024, marking a 144% rise)
- Last 6 Months: 11.20% decline
- 1-Year Return: 60.28%
- 5-Year Return: 236.72%
- Year-to-Date (YTD) Return: 21.15%
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