NHPC Ltd Share Price Target 2023, 2024, 2025, 2026, 2030

NHPC Ltd Share Price Target 2023, 2024, 2025, 2026, 2030: Electricity was a unique discovery of human history. With the advent of electricity, not only did life become easier, but human society started developing even more.

In today’s time, everyone needs electricity everywhere. In such a situation, the power company that produces electricity must remain in your portfolio.

Let’s talk today about one such company of the Government of India which is under the Ministry of Power. In today’s article, we will discuss about NHPC Ltd, as well as analyze the company’s performance and share, and know whether you should buy this share or not.

NHPC Ltd Company Information

NHPC Ltd (National Hydroelectric Power Corporation) was established in 1975. This company works from planning to installation and distribution of electricity for hydroelectric projects.

The company works on hydroelectric as well as solar power and wind power. The company currently has 24 Hydroelectric Power Plants with a capacity of 7071 MW, 8 Hydroelectric Power Plants (under-construction) with a capacity of 6434 MW, Solar Power Station 50 MW and Wind Power Station 50 MW.

Along with hydroelectric, the company is also turning its attention to renewable energy.

Looking at the shareholding pattern of the company, Promoters hold 70.95%, Mutual Funds 8.19%, Retail Investors 7.90%, Foreign Institutions 6.52% and Domestic Institutions 6.44%.

NHPC Ltd current share price

NHPC Ltd has a total market cap of ₹40,180 Crore. Despite being such a big company, their shares are currently seen trading around ₹40.

In the last one year, the highest trade was seen at ₹ 46.90 and the lowest was ₹ 27.05.

NHPC Ltd share Analysis

NHPC Ltd has a market cap of ₹40,180 Crore and the shares are currently trading around ₹40. The P/E stands at 10.41 while the industry P/E stands at 17.04. This stock may look a bit cheap according to P/E. Talking about P/B ratio, the stock is currently trading at 1.06 from its book value.

The company has a debt of around ₹26,000 crore, with a debt-to-equity ratio of 0.70. The interest coverage of the company is also 5.91%, which is very good.

The ROE of the stock is 10.37%, CAGR is about 13.81% in the term of 3 years, it does not look so much better but it is quite decent.

The company’s revenue has fallen slightly to ₹ 9189 crore in 2022, when we have seen a lot of increase in profit. The company’s profit in 2022 has been ₹ 4734 crore.

We have seen a edgrowth of 1.8% in the company’s sales in 2022. Talking about profit, it has seen a growth of 9.02% in 2022 and a growth of 10.38% in the term of 3 years CAGR.

NHPC Ltd Share Price Target 2023

A closer look at the shareholding pattern of NHPC Ltd reveals that there is no visible change in the promoters’ holding.

The management of the company whose promoters holding remains very good and unchanged is very good. We can also see this thing in the management of the company.

The profits of the company seem to be increasing year after year, even though the revenue of the company has not increased much, but due to the better profit margin, the company has been able to make good profits.

The cash-flow management of the company is also very good, with CFO/PAT at 1.32.

In 2023, NHPC Ltd’s first target can be ₹ 45 and the second target can go up to ₹ 47.

NHPC Ltd Share Price Target 2024

The construction work of about 8 hydroelectric plants of NHPC Ltd is still going on, whose capacity is about 6434 MW. As soon as the construction work of the plant is over, we can definitely see an increase in revenue and profit. Along with this, the ROE and ROCE of the company are also looking much better.

If you look at the debt burden on the company, it is only 0.70%, as far as interest is concerned, the company has a lot of reserves, due to which there will be no problem in interest payment, which will have less impact on the profit.

The first target for NHPC Ltd stock on 2024 can be ₹ 57, while the second target is expected to be ₹ 61.

NHPC Ltd Share Price Target 2025

In the coming times, along with the increasing consumption of electricity, there is a huge possibility of increasing its demand in the market. Also, the company’s infrastructure is still not located all over India, so that the company will definitely set up more hydroelectric plants in the future if needed, which can have a great impact on the company’s revenue.

Due to the better operating profit margin of the company, we are also seeing a significant increase in profit despite less revenue. Along with this, domestic investors and mutual funds are also very keen on this company.

In 2025, the first target of NHPC LTD’s stock can be ₹ 70, if we talk about the second target, it can go up to ₹ 77.

NHPC Ltd Share Price Target 2030

Along with hydroelectric plant, the company is also working on renewable energy. The company currently has only one solar power station and one wind power station.

We are hopeful of increasing this number in the coming times. Along with being an energy-rich country, the future India is turning towards carbon footprint and production of renewable energy.

In 2030, the first target of the stock can be ₹ 117, if we talk about the second target, then there is every possibility of going up to ₹ 132.

Read Also- HDFC Bank Share Price Target 2023, 2024, 2025, 2026, 2030

Conclusion

NHPC Ltd is a wonderful company of the Government of India, there is no doubt about it. Even though the share price of the company is low, we can see a lot of growth in it in the coming times. For now, most brokers are recommending it to buy.

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