CLSA upgrades NHPC’s rating to “high conviction outperform. New price target set at ₹117, slightly lower than the previous ₹120. NHPC shares expected to double over the next four years. Parbati 2 Hydro Project launch boosts regulated equity by 27%. NHPC plans ₹84,000 crore investment in 20 GW pumped storage capacity. Stock gains 4%, currently trading at ₹77.75, after a 25% correction in six months.
Key Highlights:
NHPC Share Price Rating Upgrade by CLSA:
On Thursday, February 20, 2025, brokerage firm CLSA upgraded NHPC Ltd. to “high conviction outperform” from its previous “outperform” rating.
CLSA has set a new price target of ₹117, slightly reduced from its earlier target of ₹120. Despite this minor adjustment, the firm remains highly optimistic about NHPC’s long-term potential, expecting the stock to double in value over the next four years.
The upgrade follows a 25% correction in NHPC’s stock price over the past six months, which CLSA views as a buying opportunity for investors at lower valuations.
NHPC’s growth potential and project expansions:
Parbati 2 Hydro Project Impact
One of the key drivers behind CLSA’s bullish outlook is the recent launch of the Parbati 2 Hydro Project, which increased NHPC’s regulated equity by 27% in the first quarter of FY25.
Investment in Pumped Storage Capacity
NHPC is set to enter the regulated pumped storage market, with plans to construct 20 GW of pumped storage capacity at an estimated investment of ₹84,000 crore.
CLSA anticipates that with the completion of major projects, NHPC’s regulated equity will double between FY24 and FY28, significantly driving earnings per share (EPS) growth.
NHPC Stock Performance and Analyst Ratings:
Current Stock Performance
- NHPC shares gained 4% on Monday, currently trading at ₹77.75.
- The stock has seen a 5% decline in the first two months of 2025 due to broader market corrections.
Analyst Recommendations
Among 10 analysts covering NHPC:
- 5 recommend “Buy.”
- 2 recommend “Hold.”
- 3 recommend “Sell.”
NHPC Poised for Strong Growth:
With strategic investments, increasing regulated equity, and CLSA’s bullish outlook, NHPC appears to be a promising investment opportunity for long-term investors.
The expected doubling of NHPC’s stock price in four years, coupled with its entry into the pumped storage market, makes it a key stock to watch in the renewable energy sector.
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