Buy NHPC, target price Rs 50: HDFC Securities

HDFC Securities has buy call on NHPC with a target price of Rs 50. The current market price of NHPC is Rs 38.9.

NHPC, incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 39225.86 Crore) operating in Power sector.

NHPC key Products/Revenue Segments include Power, Lease & Other Income, Income from Finance Leases, Other Operating Revenue, Income from Project Development and Contract Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3529.31 Crore, up 18.00 % from last quarter Total Income of Rs 2990.86 Crore and up 11.49 % from last year same quarter Total Income of Rs 3165.59 Crore. Company has reported net profit after tax of Rs 1683.94 Crore in latest quarter.

The company’s top management includes Mr.Abhay Kumar Singh, Mr.Yamuna Kumar Chaubey, Mr.Rajendra Prasad Goyal, Mr.Biswajit Basu, Mr.Raghuraj Madhav Rajendran, Dr.Uday Sakharam Nirgudkar, Prof. (Dr)Amit Kansal, Dr.Rashmi Sharma Rawal, Mr.Jiji Joseph. Company has Arora Vohra & Co. as its auditors. As on 30-06-2022, the company has a total of 1,004 Crore shares outstanding.

Investment Rationale
The company is expected to report a flat quarter YoY with a marginal rise of 2.1% in earnings. The overall generation is expected to decline by 10%YoY.

Promoter/FII Holdings
Promoters held 70.95 per cent stake in the company as of 30-Jun-2022, while FIIs owned 6.61 per cent, DIIs 14.56 per cent.