Buy NHPC, target price Rs 35: ICICI Securities

ICICI Securities has buy call on NHPC with a target price of Rs 35. The current market price of NHPC is Rs 27. Time period given by analyst is one year when NHPC Ltd. price can reach defined target.

NHPC Ltd., incorporated in the year 1975, is a Large Cap company (having a market cap of Rs 27171.82 Crore) operating in Power sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2094.30 Crore, down -19.78 % from last quarter Total Income of Rs 2610.69 Crore and down -12.09 % from last year same quarter Total Income of Rs 2382.36 Crore. Company reported net profit after tax of Rs 471.89 Crore in latest quarter.

Investment Rationale
NHPC is the only ‘completely green’ PSU generating company as well as the largest in the country. The stock is trading at 7.6x P/E and 0.8x P/B on FY23E basis. Its dividend yield is >6%. The brokerage maintains BUY rating, but slightly increase DCF-based target price to Rs35 (earlier Rs34), incorporating higher ‘other income’.

Promoter/FII Holdings
Promoters held 71 per cent stake in the company as of March 31, 2021, while FIIs held 4 per cent, DIIs 14.9 per cent and public and others 10.1 per cent.

(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)