Motilal Oswal 's research report on NHPC
NHPC’s results highlight the benefit of higher generation and the low base of the previous year. Adjusted PAT rose to INR3.8b (v/s INR40m in 4QFY19). The capex run-rate is expected to increase on account of investments in new projects. However, their commissioning remains four to five years away, implying FCF/RoEs would be dragged down in the near term. Maintain Neutral, with TP of INR22/sh. NHPC’s regulated equity growth, the key earnings driver, would be muted over the next few years. We maintain Neutral, with DCF-based TP of INR22/sh.
Outlook
NHPC’s regulated equity growth, the key earnings driver, would be muted over the next few years. We maintain Neutral, with DCF-based TP of INR22/sh.
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